Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?

This study empirically examines the impact of trade openness on ecological footprint (F) employing panel data time series covering the period 1991–2016 for the sample of thirty five Asian countries. To analyze the consequence of trade at three distinct transition points, we decompose the trade effec...

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Main Authors: Mohd Arshad Ansari, N.A. Khan
Format: Article
Language:English
Published: Elsevier 2021-02-01
Series:Ecological Indicators
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S1470160X2031061X
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author Mohd Arshad Ansari
N.A. Khan
author_facet Mohd Arshad Ansari
N.A. Khan
author_sort Mohd Arshad Ansari
collection DOAJ
description This study empirically examines the impact of trade openness on ecological footprint (F) employing panel data time series covering the period 1991–2016 for the sample of thirty five Asian countries. To analyze the consequence of trade at three distinct transition points, we decompose the trade effect into scale, composition, and technique effects. Using second generation econometric approaches that considers the issue of cross sectional dependence, the result show positive (negative) effect of scale (technique) on ecological footprint which validates the environmental Kuznets curve hypothesis for high income, upper middle and lower middle income countries. Further, energy consumption contribute to ecological footprint whereas, composition effect and trade openness mitigates environmental degradation. However, the results vary across different sub-panels. The findings impart innovative approach to detect the influence of trade openness in three sub dimensions of trade liberalization. Hence, for trade policy makers and economists, this article assigns more comprehensive policy implications and suggest sustainable trade agreements among the region.
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spelling doaj.art-84357529bec84dd09163657040d9eaea2022-12-21T19:51:11ZengElsevierEcological Indicators1470-160X2021-02-01121107122Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?Mohd Arshad Ansari0N.A. Khan1School of Economics, University of Hyderabad, Gachibowli, Hyderabad, Telangana 500046, India; Corresponding author at: School of Economics, North campus, University of Hyderabad, Gachibowli, Hyderabad, Telangana 500046, India.Faculty of School of Economics, University of Hyderabad, Hyderabad, Telangana, IndiaThis study empirically examines the impact of trade openness on ecological footprint (F) employing panel data time series covering the period 1991–2016 for the sample of thirty five Asian countries. To analyze the consequence of trade at three distinct transition points, we decompose the trade effect into scale, composition, and technique effects. Using second generation econometric approaches that considers the issue of cross sectional dependence, the result show positive (negative) effect of scale (technique) on ecological footprint which validates the environmental Kuznets curve hypothesis for high income, upper middle and lower middle income countries. Further, energy consumption contribute to ecological footprint whereas, composition effect and trade openness mitigates environmental degradation. However, the results vary across different sub-panels. The findings impart innovative approach to detect the influence of trade openness in three sub dimensions of trade liberalization. Hence, for trade policy makers and economists, this article assigns more comprehensive policy implications and suggest sustainable trade agreements among the region.http://www.sciencedirect.com/science/article/pii/S1470160X2031061XEcological footprintEconomic growthTrade opennessScale effectComposition effectTechnique effect
spellingShingle Mohd Arshad Ansari
N.A. Khan
Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
Ecological Indicators
Ecological footprint
Economic growth
Trade openness
Scale effect
Composition effect
Technique effect
title Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
title_full Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
title_fullStr Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
title_full_unstemmed Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
title_short Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate?
title_sort decomposing the trade environment nexus for high income upper and lower middle income countries what do the composition scale and technique effect indicate
topic Ecological footprint
Economic growth
Trade openness
Scale effect
Composition effect
Technique effect
url http://www.sciencedirect.com/science/article/pii/S1470160X2031061X
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