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Consumption-based carbon emissions and trade nexus: Evidence from nine oil exporting countries

Zeeshan Khan, Muhsin Ali, Liu Jinyu, Muhammad Shahbaz () and Yang Siqun

Energy Economics, 2020, vol. 89, issue C

Abstract: The relationship between international trade and carbon emissions has been studied extensively; nonetheless, consumption-based carbon emissions, which is adjusted for international trade, have not been studied. This study is an attempt to address the gap by using consumption-based carbon emissions which is adjusted for trade in case of oil-exporting countries. The effect of international trade is analyzed by treating exports and imports separately from 1990 to 2018. The long-run impact of all variables, i.e., exports, imports, and gross domestic product (GDP) is higher than the short-run coefficients. The empirical evidence, both in the long-run and short-run, confirms the negative effect of exports on consumption-based carbon emissions. Furthermore, gross domestic product (GDP) and imports have a positive and statistically significant impact on consumption-based carbon emissions both in the short-run and long-run. Policies related to consumption-based carbon emissions and international trade shall realize the effect of government policies to absorb it fully by taking approximately two years.

Keywords: Consumption-based carbon emissions; Oil-exporting countries; International trade (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.eneco.2020.104806

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