Impacts of trade and institutional quality on carbon emissions in transition economies

Hyun-Jung Nam and Doojin Ryu

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: We examine the effects of trade and institutional quality on carbon emissions from European transition economies. Trade initially negatively impacts the environment through greater CO2 emissions but eventually contributes to a reduction of CO2 emissions beyond a certain threshold. Institutional quality including control of corruption contributes to CO2 emission reductions. Connecting trade with environmental solutions, we identify an inverted U-shaped relationship between trade volume and carbon emissions.

Keywords: Carbon emission; European transition economy; Institutional quality; Trade (search for similar items in EconPapers)
JEL-codes: F18 F41 G15 G18 P18 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009024

DOI: 10.1016/j.frl.2024.105872

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