Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis

Muhammad Shahbaz, Syed Jawad Hussain Shahzad and Mantu Kumar

MPRA Paper from University Library of Munich, Germany

Abstract: Using annual data 1970-2014, this paper examines the effects of globalization on CO2 emissions in Japan while accounting for economic growth and energy consumption as potential determinants of carbon emissions. The structural breaks and asymmetries arising due to policy shifts require attention and hence an asymmetric threshold version of the ARDL model is utilized. The results show the presence of threshold asymmetric cointegration between the variables. The threshold-based positive and negative shocks arising in globalization increase carbon emissions, while the impact of the latter is more profound. Energy consumption (economic growth) also has a significant positive effect on carbon emissions. Globalization, economic growth and energy consumption significantly increase carbon emissions in the short run. We suggest that policy makers in Japan should consider globalization and energy consumption as policy tools while formulating their policies towards protecting sustainable environmental quality in the long run. Otherwise, the Japanese economy may continue to face environmental consequences such as undesirable climate change and massive warming at the micro and macro levels as a result of potential shocks arising from globalization and energy consumption.

Keywords: Carbon emissions; energy consumption; globalization; threshold NARDL (search for similar items in EconPapers)
JEL-codes: A1 (search for similar items in EconPapers)
Date: 2017-10-19, Revised 2017-11-03
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/82413/1/MPRA_paper_82413.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82413

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).