The effects of COVID-19 on trade, production, environmental quality and its implications for green economy

Abstract

PurposeThis study examines the effects of COVID-19 on trade, production and environmental quality and provides policy implications on green recovery.Design/methodology/approachThe two-step Heckman method is applied to estimate the structural gravity specification of trade. Besides, the two-step system GMM model is used to estimate the effects of COVID-19 on production and environmental quality. Additionally, descriptive analysis and literature review have been used.FindingsThe findings disclose that COVID-19 adversely affected the trade performance of the countries. The results further imply that the regional trade agreements (RTAs) can play a key mediating role in the post-COVID-19 trade recovery. Besides, the impact of COVID-19 on the output is substantially negative. However, the effect of COVID-19 on environmental quality is significantly positive.Originality/valueIt is the first study of its kind to examine the effects of COVID-19 on trade, production and CO2 emissions covering panel countries. Second, it provides a detailed analysis of firms planning to engage in the export sector. Moreover, it offers policy suggestions to consider environmental quality and green recovery. Besides, it examines the mediating role of RTAs in the relationship between trade and the pandemic.

Environmental taxation: Contribution to sustainable development and AI prospects

“…It strengthens the evidence base that economic tools, such as environmental taxation, could make (in practice) a significant contribution to the environmental protection and development of the environmental economy. The paper has advanced our understanding on the previous work on the existing theories of the environmental economy (Nita, 2019;Adebayo et al, 2022;Borojo et al, 2022;Hassan et al, 2022;Nita et al, 2022;Nwani et al, 2022;Pinheiro et al, 2022;Rani et al, 2022), proving the existence of a close direct connection between the collection of environmental taxes, protection of ecosystems and preservation of biodiversity.…”

Industry 4.0 and industry 5.0: can clusters deal with the challenges? (A systemic approach)

“…Industry 5.0 provides a vision of industry that aims beyond efficiency and productivity as the sole goals, and reinforces the role and the contribution of industry to society (Chen et al, 2020;Cillo et al, 2021;Xu et al, 2021;Faruqi, 2019). It places the well-being of the worker at the centre of the production process, and uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet (Borojo et al, 2021;Moutzis, 2021;Romero and Stahre, 2021;Demir et al, 2019). It complements the existing "Industry 4.0" approach by specifically putting research and innovation at the service of the transition to a sustainable, human-centric and resilient European industry (Grabowska et al, 2022;Longo et al, 2020;Poto can et al, 2021;Neisig, 2022).…”

Bibliometric Analysis of Global Research Focus on Green Economics...

“…In this regard study by Akhuno et al (2021) indicates that due to the Pandemic, Russia's oil and gas sector was adversely impacted. The impact of COVID-19 is not limited, and it has impacted the trade sectors of many countries; however, it helps positively for environmental sustainability (Borojo et al, 2021). The world acts promptly and prepares well to deal with such pandemics in a much better way to protect the world economy (Eldelen & Richardson, 2021;Lahce et al, 2020).…”

“…The world acts promptly and prepares well to deal with such pandemics in a much better way to protect the world economy (Eldelen & Richardson, 2021;Lahce et al, 2020). Borojo et al (2021) evaluated the effect of COVID-19 on the production, trade, and quality of the environment and its possible impact on the green economy. The findings of this study suggest a negative relationship between the COVID-19 Pandemic and production and regional trade.…”