Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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Economic and Non-economic Determinants of Environmental Sustainability in the Long Run: Evidence from G20 Economies

  • Yin, Zihui (School of Economics and Trade, Hunan University of Technology) ;
  • Choi, Chang Hwan (Department of International Trade, Dankook University) ;
  • Ko, Jung O (Global Business Administration, Chonnam University)
  • Received : 2021.04.06
  • Accepted : 2021.11.09
  • Published : 2022.02.28
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Abstract

Purpose - This paper analyzes the economic and non-economic factors that contribute to environmental sustainability by reducing CO2 emissions, based on G20 panel data. Design/methodology - We conduct a comparative analysis of advanced and developing economies during 1995-2016. To examine the impact, an environmental Kuznets curve (EKC) model was employed, incorporating additional explanatory variables such as internet use, renewable energy, and services trade. Findings - The empirical findings show the existence of an inverted U-shaped EKC phenomenon between GDP per capita and CO2 emissions in G20 economies, with the turning point at a per capita GDP level of US$ 38,340. Moreover, an inverted U-shape relation exists between internet use and CO2 emissions, with the turning point at a 44% internet use rate. The comparative analysis show that the inverted U-shape curve only exits in advanced economies, with turning points of US$ 42,356 per capita GDP and 27% internet use rate, respectively. Renewable energy and services trade have a greater negative impact on CO2 emissions in advanced economies than in developing economies. Originality/value - Renewable energy and services trade have a greater negative impact on CO2 emissions in advanced economies than in developing economies. Overall, the results suggest the role of internet use, renewable energy and services trade in sustainable development in G20 countries.

Keywords

Acknowledgement

The present research was conducted by the research fund of Dankook University in 2021.

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