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Testing the globalization-driven carbon emissions hypothesis: International evidence
Journal article   Open access   Peer reviewed

Testing the globalization-driven carbon emissions hypothesis: International evidence

Muhammad Shahbaz, Mantu Kumar Mahalik, Syed Jawad Hussain Shahzad and Shawkat Hammoudeh
International economics (Paris), v 158
Aug 2019
url
https://mpra.ub.uni-muenchen.de/92175/1/MPRA_paper_92175.pdfView

Abstract

Carbon emissions Cross-correlation EKC Globalization
We empirically investigate the dynamic relationship between globalization and CO2 emissions for 87 (high, middle and low-income) countries. We utilize the cross-correlation approach to examine the well-known EKC hypothesis between globalization and environmental degradation. The results validate the inverted U-shaped EKC hypothesis for 16 (approximately 18%) from the high- and middle-income countries only, thereby highlighting that a rise in globalization will decrease carbon emissions for these countries in the future. On contrary, the results also confirm the U-shaped relationship between globalization and environmental degradation for 8% of the countries. The remaining countries do not have a U- or an inverted U-shaped relationship between globalization and CO2 emissions. Policy implications are also discussed.

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