The causal effect of trade liberalization on the environment

Onwachukwu, Chinedu Increase; Yan, Kit-Ming Isabel; Kerui, TU

doi:10.1016/j.jclepro.2021.128615

Cited by 14 publications

(8 citation statements)

References 59 publications

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“…The benefits of international trade, including production efficiency, utilization of surplus produce and increased revenues, have been the major drivers of economic growth for most resource‐rich countries such as Africa's OPEC member countries. However, obtaining such gains is not cost‐free because economic expansion thrives on globally intertwined markets, and many of the environmental consequences of exploiting natural resources are huge globally (Ajayi & Ogunrinola, 2020; Iorember et al, 2021; Onwachukwu et al, 2021). An increase in trade flows spells tremendous changes in the industrial composition, demand, and strategy of production and taste, which in turn increases CO 2 emissions, thus reducing environmental quality.…”

Section: Introductionmentioning

confidence: 99%

Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries

Iorember

Gbaka

Jelilov

et al. 2022

African Development Review

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The huge endowment, exploitation and trading of carbon content energy resources by the African OPEC member countries for economic expansion substantiate the fears of increasing global warming and environmental degradation. This study explores the dynamic effects of trade flows, energy consumption and per capita income on environmental degradation in seven of Africa's OPEC member countries (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya and Nigeria), within the framework of the environmental Kuznets curve (EKC) and the pollution haven hypothesis (PHH). By employing the bootstrap panel cointegration test and the PMG/ARDL estimation technique on panel data spanning from 1990 to 2017, the empirical results show a positive but insignificant effect of trade flows on environmental degradation. The results further show that while renewable energy dampens environmental degradation, non-renewable energy exerts upward pressure on environmental degradation. In addition, the results provide evidence in support of a U-shaped EKC in the long run. The study, therefore, recommends the expansion of renewable energy consumption to ensure not only environmental sustainability but also to attain the regional goal of sustainable development.

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Section: Introductionmentioning

confidence: 99%

Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries

Iorember

Gbaka

Jelilov

et al. 2022

African Development Review

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show abstract

“…In addition to the sectoral analyses listed in Table 1, the literature finds both positive and negative impacts of trade liberalization on the environment, mainly focusing on CO 2 emissions. A study revealed that trade liberalization hurts the environment by increasing CO 2 as the most-emitted and N 2 O as the least-emitted GHGs in the atmosphere [20]. This study also argues that the proportion of CO 2 in the GHGs is 90%.…”

Section: Literature Reviewmentioning

confidence: 77%

“…The model specification follows the existing literature examining the determinants of environmental quality [20,32,33]. Our key outcome variable is the log of CO 2 gas emissions-an environmental quality indicator.…”

Section: Empirical Modelmentioning

confidence: 99%

“…As such, developing countries are more vulnerable to environmental pollution than developed countries [16] if the pollution haven hypothesis holds [17,18], although it is possible to see the pollution halo hypothesis and improve environmental quality [19] if the use of environmentally friendly and clean technology is promoted in the production process. Existing literature on the trade-environment nexus focuses on total trade [9,12,20,21]. However, the analysis focusing on the impact of total trade on the environment underestimates the effects of trade categories with high negative impacts while overestimating the effects of other types with less harmful impacts.…”

Section: Introductionmentioning

confidence: 99%

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Environmental Effects of Commodity Trade vs. Service Trade in Developing Countries

Saeed¹,

Ghimire²

2022

Commodities

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Increasing levels of carbon emissions have been a growing concern worldwide because of their adverse environmental effects. In that context, this paper examines the association between different categories of trade and carbon dioxide emissions. In particular, we analyze whether total trade, commodity trade, and service trade affect the environment differently. The analysis is based on panel data for 147 developing countries for the period from 1960 to 2020. Methodologically, the fixed-effects model, as suggested by the Hausman test, is used to examine the relationships. We present two main conclusions: (1) overall trade increases CO2 emissions, and (2) commodity trade contributes to higher levels of CO2 emissions than service trade. These results have important policy implications—climate change policies should target commodity trade sectors to help reduce environmental carbon emissions.

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“…But, using multiple firm-level indicators, they showed the presence of the trade-induced technique result -that trade liberalization can help cleaner production. Onwachukwu et al (2021) investigated the causal effect of trade liberalization on the environment. Their study analyzed the effect of trade liberalization on carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emissions.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Liberalization and Environmental Pollution in Iran

Makiyan¹,

Saeedi²,

Nejati³

2022

jepr

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The environment is one of the main concerns in global policies and affects many other factors including the economy. Trade liberalization would affect environmental quality through its effect on production. This study aims to express the effect of the trade liberalization policy on environmental pollution in the frame of a multi-regional system model. Thus, the GTAP-E model was utilized for the year 2019, so that the environmental consequences (in terms of measurement of CO2 emission) could be studied as the result of reducing the tariffs on import in the forms of two scenarios. In the first scenario, the import tariff on agricultural, industry and services products was reduced by 5%, and in the second scenario, the import tariff on the agricultural, industry and services sectors was reduced by 5%, 10% and 15%, respectively. The results obtained in both cases indicate a reduction in the effect of scale, technique and composition. The results indicate that an import tariff reduction in the various sectors of the economy reduces pollution emissions and its effects improve the environment. The second scenario has a greater effect on the different sectors and also is closer to the reality of Iran's economy.

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The causal effect of trade liberalization on the environment

Cited by 14 publications

References 59 publications

Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries

Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries

Environmental Effects of Commodity Trade vs. Service Trade in Developing Countries

Trade Liberalization and Environmental Pollution in Iran

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