Survey on Scale, Composition and Technical Effects of International Trade Pattern on Carbon Emission; Case Study of Selected Developing Oil-Exporting Countries

Shahhosseini, Somayeh; Faridzad, Ali; Faridzad, Ali

doi:10.22054/joer.2017.7849

Document Type : Research Paper

Authors

Assistant Professor, Faculty of Economics, Allameh Tabataba’i University

https://doi.org/10.22054/joer.2017.7849

Abstract

Some researchers consider trade liberalization as a factor for increasing the quality of the environment. However, others argue that trade liberalization leads to some countries specialize in the production of pollution-intensive, energy-intensive or capital-intensive goods and therefore the quality of the environment is reduced. Since theory offers grounds for both positive and negative relationship between trade and the environment, the issue must be settled through empirical analysis. In this context, the main question here is how international trade affects quality of environment in oil exporting countries? For this purpose, in the form of composition, scale and technical effects, we construct a panel data analysis to identify the relationship between international trade and carbon emission of selected oil exporting countries during 1990–2011. Our results suggest that there is positive relationship between trade openness and carbon emission and thus, pollution heaven hypothesis for these countries is not rejected. Also, the relationship between per capita output and carbon emission is N-shape and scale effect is negative. Furthermore, increasing comparative advantage and foreign direct investment leads to a reduction in oil exporting countries’ carbon emissions; which respectively indicate scale and technical effects of the international trade to be negative.

Keywords

References

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Economics Research

Survey on Scale, Composition and Technical Effects of International Trade Pattern on Carbon Emission; Case Study of Selected Developing Oil-Exporting Countries

References

References

Volume 17, Issue 65 - Serial Number 2
July 2017
Pages 143-176

Survey on Scale, Composition and Technical Effects of International Trade Pattern on Carbon Emission; Case Study of Selected Developing Oil-Exporting Countries

References

References

Volume 17, Issue 65 - Serial Number 2July 2017Pages 143-176

Volume 17, Issue 65 - Serial Number 2
July 2017
Pages 143-176