Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth
Evidence of climate change is widespread and severe across all parts of the world. This poses a threat to humanity, and the entire environment. Appropriate policies are therefore required to help reduce greenhouse gas emission levels, limit the rate of global warming and its impact on climate change...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-01-01
|
| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023106785 |
| _version_ | 1797337038056325120 |
|---|---|
| author | Franklin Bedakiyiba Baajike Eric Fosu Oteng-Abayie John Bosco Dramani Kofi Amanor |
| author_facet | Franklin Bedakiyiba Baajike Eric Fosu Oteng-Abayie John Bosco Dramani Kofi Amanor |
| author_sort | Franklin Bedakiyiba Baajike |
| collection | DOAJ |
| description | Evidence of climate change is widespread and severe across all parts of the world. This poses a threat to humanity, and the entire environment. Appropriate policies are therefore required to help reduce greenhouse gas emission levels, limit the rate of global warming and its impact on climate change while pursuing national growth targets. This study employs the Tapio decoupling method to analyse the decoupling relationship (DR) between economic growth and carbon dioxide (CO2) emissions from 1998 to 2018. We also apply the Logarithmic Mean Divisia Index (LMDI) decomposition method on an extended Kaya identity to analyse CO2 emissions drivers in 145 countries. Last, the study examined the relative impacts of trade intensity and trade efficiency on the DR between economic growth and CO2 emissions. The results revealed that regions with relatively many developing and emerging countries (i.e., SSA, EAP, LAC, MENA, and SA) generally performed Weak Decoupling (WD), Expansive Negative Decoupling (END) and Expansive Coupling (EC), and the decoupling process was largely unstable. The ECA and NA regions on the other hand, which are typically composed of developed economies performed stable WD and Strong Decoupling (SD) statuses throughout the study period. The evidence further revealed that while trade intensity, activity, population, output per carbon emission and Carbon Intensity (CI) effects promote CO2 emissions, trade efficiency and energy intensity (EI) hinder emissions. We recommend that developing countries should enforce laws and cooperate with the developed economies to gain access to green technology to promote environmental sustainability. |
| first_indexed | 2024-03-08T09:03:36Z |
| format | Article |
| id | doaj.art-8264e026f5b54253a60e6a8d552fec80 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T09:03:36Z |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-8264e026f5b54253a60e6a8d552fec802024-02-01T06:32:01ZengElsevierHeliyon2405-84402024-01-01101e23470Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growthFranklin Bedakiyiba Baajike0Eric Fosu Oteng-Abayie1John Bosco Dramani2Kofi Amanor3Department of Economics, Kwame Nkrumah University of Science and Technology, GhanaDepartment of Economics, Kwame Nkrumah University of Science and Technology, Ghana; Department of Business Studies, School of Business & Applied Sciences, Garden City University College, Kumasi, GhanaDepartment of Economics, Kwame Nkrumah University of Science and Technology, GhanaDepartment of Economics, Kwame Nkrumah University of Science and Technology, Ghana; Corresponding author.Evidence of climate change is widespread and severe across all parts of the world. This poses a threat to humanity, and the entire environment. Appropriate policies are therefore required to help reduce greenhouse gas emission levels, limit the rate of global warming and its impact on climate change while pursuing national growth targets. This study employs the Tapio decoupling method to analyse the decoupling relationship (DR) between economic growth and carbon dioxide (CO2) emissions from 1998 to 2018. We also apply the Logarithmic Mean Divisia Index (LMDI) decomposition method on an extended Kaya identity to analyse CO2 emissions drivers in 145 countries. Last, the study examined the relative impacts of trade intensity and trade efficiency on the DR between economic growth and CO2 emissions. The results revealed that regions with relatively many developing and emerging countries (i.e., SSA, EAP, LAC, MENA, and SA) generally performed Weak Decoupling (WD), Expansive Negative Decoupling (END) and Expansive Coupling (EC), and the decoupling process was largely unstable. The ECA and NA regions on the other hand, which are typically composed of developed economies performed stable WD and Strong Decoupling (SD) statuses throughout the study period. The evidence further revealed that while trade intensity, activity, population, output per carbon emission and Carbon Intensity (CI) effects promote CO2 emissions, trade efficiency and energy intensity (EI) hinder emissions. We recommend that developing countries should enforce laws and cooperate with the developed economies to gain access to green technology to promote environmental sustainability.http://www.sciencedirect.com/science/article/pii/S2405844023106785Environmental sustainabilityDecouplingDecompositionTrade liberalizationRegional analysisEnergy |
| spellingShingle | Franklin Bedakiyiba Baajike Eric Fosu Oteng-Abayie John Bosco Dramani Kofi Amanor Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth Heliyon Environmental sustainability Decoupling Decomposition Trade liberalization Regional analysis Energy |
| title | Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth |
| title_full | Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth |
| title_fullStr | Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth |
| title_full_unstemmed | Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth |
| title_short | Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth |
| title_sort | effects of trade liberalization on the global decoupling and decomposition of co2 emissions from economic growth |
| topic | Environmental sustainability Decoupling Decomposition Trade liberalization Regional analysis Energy |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023106785 |
| work_keys_str_mv | AT franklinbedakiyibabaajike effectsoftradeliberalizationontheglobaldecouplinganddecompositionofco2emissionsfromeconomicgrowth AT ericfosuotengabayie effectsoftradeliberalizationontheglobaldecouplinganddecompositionofco2emissionsfromeconomicgrowth AT johnboscodramani effectsoftradeliberalizationontheglobaldecouplinganddecompositionofco2emissionsfromeconomicgrowth AT kofiamanor effectsoftradeliberalizationontheglobaldecouplinganddecompositionofco2emissionsfromeconomicgrowth |