Trade Openness and CO2 Emissions: Evidence of Bangladesh

  • Oh, Keun-Yeob (Department of International Trade, Chungnam National University) ;
  • Bhuyan, Md Iqbal (Department of International Trade, Chungnam National University)
  • Received : 2017.05.03
  • Accepted : 2017.09.17
  • Published : 2018.03.31


This study investigates the relationship between economic growth, energy consumption, trade openness, population density, and carbon dioxide ($CO_2$) emissions in Bangladesh for the period of 1975 to 2013. It applies the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration for establishing the existence of a long-run relationship. The bounds tests suggest that the variables of interest are bound together in the long-run when $CO_2$ emissions is the dependent variable. The results indicate that energy consumption has statistically significant positive effect on $CO_2$ emissions both in the short-run and long-run. The effect of population density is significant in long-run, but not in short-run. The estimated coefficients for economic growth and trade liberalization are negative and insignificant both in short-run and long-run. The paper suggests that the government of Bangladesh should undertake the policy actions to develop alternative energy sources which would not emit much $CO_2$.



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