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G7 countries: between trade openness and CO2 emissions

Mihai Ioan Mutascu ()

Economics Bulletin, 2018, vol. 38, issue 3, 1446-1456

Abstract: The paper analyses the causality between the trade openness and CO2 emissions in the G7 countries by using the bootstrap panel Granger causality. The panel includes seven countries (i.e. Canada, France, Germany, Italy, Japan, United Kingdom and United States of America) and covers the period 1995-2011. The main results show a strong heterogeneity between the G7 countries in terms of international trade and environmental issues. The CO2 emissions embodied in domestic final demand explains very well the trade openness, more precisely the imports. A higher propensity for social environmental responsibility characterizes the importers from EU countries comparing with the non-EU ones. Otherwise, the trade openness is a good proxy for the CO2 emissions generated by the sector of production. Curiously, the very big economies register an auto-regulatory mechanism of CO2 emissions related to trade, for both domestic consumption and production areas.

Keywords: Trade openness; CO2 emissions; Bootstrap panel causality; G7 countries (search for similar items in EconPapers)
JEL-codes: C1 F1 (search for similar items in EconPapers)
Date: 2018-08-05
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