Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 50 , 01 December 2023
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Access | Article
Income, Trade Openness, and Carbon Emission: Comparative Analysis of Continents and Trade Regions
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Abstract
Trade is one of the significant contributors to carbon emissions because it promotes transportation and merchandise production. With the threat of global warming, it is essential to study how trade influences carbon emissions and what are the potential solutions. This paper tests the correlation between trade openness and carbon emissions in different continents and regions. Using panel data analysis, the regression result suggests that the relationship is positive in Africa, South America, Asia, and North America, while it is negative in Europe and Oceania. Moreover, positive relationships are also observed in afCFTA (African Continental Free Trade Area) and non-afCFTA, while EU (European Union), non-EU regions, GCC (Gulf Cooperation Council), and non-GCC regions display negative trends. The result verified that developed regions are generally more efficient at carbon emissions compared to under-developed ones. Therefore, high-income continents need to aid low-income continents with carbon reduction. Countries located on a low-income continent should insert more effort to reduce emissions when they intend to boost trading with other countries. The regression coefficients also suggest that non-EU and non-afCFTA countries should join the free trade agreements from an environmental aspect. All regions should not neglect emissions when trading and adopt strategies based on local characteristics to combat the increasing global emissions together.
Keywords
carbon dioxide emission, free trade agreements, climate change, trade openness, economic growth
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-147-6
- ISBN (Online)
- 978-1-83558-148-3
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/50/20230552
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited