The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions

Zhou Lu, Mantu Kumar Mahalik, Hrushikesh Mahalik and Rui Zhao

Technological Forecasting and Social Change, 2022, vol. 180, issue C

Abstract: This paper examines carbon emission growth rates in 35 OECD economies from 1970 to 2019. It analyses the effects of trade liberalisation policy on carbon emissions in interaction with democracy. Both variables serve as potential drivers of adopting emission-reducing technologies. It is observed that trade liberalisation increases carbon dioxide emissions; however, democracy reduces the carbon emission growth rates. In addition, the interaction of trade liberalisation with democracy has a positive impact on carbon dioxide emissions. These findings mean that trade liberalisation has a lessened negative effect on carbon dioxide emissions in more democratic countries. These results indicate several policy implications for the climate change crisis, given that policymakers in democracies do a better job of providing policy formation for climate change than autocracies.

Keywords: Carbon emissions; Trade liberalisation policy; Technology adoption; International trade; Democracy; COP26 conference (search for similar items in EconPapers)
JEL-codes: C33 F18 F64 O33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:180:y:2022:i:c:s0040162522002384

DOI: 10.1016/j.techfore.2022.121712

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