Browse > Article
http://dx.doi.org/10.5572/ajae.2018.12.1.030

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)
Publication Information
Asian Journal of Atmospheric Environment / v.12, no.1, 2018 , pp. 30-36 More about this Journal
Abstract
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 $CO_2$.
Keywords
ARDL; Carbon dioxide ($CO_2$); Economic growth; Trade liberalization; Population density;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Apergis, N., Payne, J. (2009) Energy consumption and economic growth in Central America: Evidence from a panel cointegration and error correction model. Energy Economics 31(2), 211-216.   DOI
2 Asongu, S., Montasser, G.El., Toumi, H. (2016) Testing the relationships between energy consumption, $CO_2$ emissions, and economic growth in 24 African countries: a panel ARDL approach. Environmental Science and Pollution Research 23(7), 6563-6573.   DOI
3 Saboori, B., Sulaiman, J. (2013) $CO_2$ emissions, energy consumption and economic growth in Association of Southeast Asian Nations (ASEAN) countries: A cointegration approach. Energy 55, 813-822.   DOI
4 Sebri, M., Ben-Salha, O. (2014) On the causal dynamics between economic growth, renewable energy consumption, $CO_2$ emissions and trade openness: fresh evidence from BRICS countries. Renewable and Sustainable Energy Reviews 39, 14-23.   DOI
5 Shahbaz, M., Solarin, S.A., Mahmood, H., Arouri, M. (2013) Does financial development reduce $CO_2$ emissions in Malaysian economy? A time series analysis. Economic Modelling 35, 145-152.   DOI
6 World Bank (2010) World development indicators. World Bank, Washington, DC.
7 Mahmood, H., Chaudhary, A.R. (2012) FDI, population density and carbon dioxide Emissions: A case study of Pakistan. Iranica Journal of Energy & Environment 3(4), 355-361.
8 Managi, S., Hibiki, A., Tsurumi, T. (2009) Does trade openness improve environmental quality? Journal of Environmental Economics and Management 58, 346-363.
9 McAusland, C., Millimet, D.L. (2013) Do national borders matter? Intranational trade, international trade, and the environment. Journal of Environmental Economics and Management 65, 411-437.   DOI
10 Naranpanawa, A. (2011) Does trade openness promote carbon emissions? empirical evidence from Sri Lanka? The Empirical Economics Letters 10(10), 973-986.
11 Narayan, P.K., Narayan, S. (2010) Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy 38, 661-666.   DOI
12 Zaman, R.Z. (2011) $CO_2$ Emissions, Trade Openness and GDP per capita: Literature Review and Empirical Study on the Case of Bangladesh (Master's thesis, University of Bari, Italy). Retrieved November, 2016, from https://mpra.ub.uni-muenchen.de/48515/1/MPRA_paper_48515.pdf
13 Zhou, Y., Liu, Y. (2016) Does population have a larger impact on carbon dioxide emissions than income? Evidence from a cross-regional panel analysis in China. Applied Energy 180, 800-809.   DOI
14 Chebbi, H.E., Olarreaga, M., Zitouna, H. (2009) Trade openness and $CO_2$ emissions in Tunisia. ERF 16th Annual Conference, November 7-9, 2009.
15 Dogan, E., Turkekul, B. (2016) $CO_2$ emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environmental Science and Pollution Research 23(2), 1203-1213.   DOI
16 Acaravci, A., Ozturk, I. (2010) On the relationship between energy consumption, $CO_2$ emissions and economic growth in Europe. Energy 35(12), 5412-5420.   DOI
17 Engle, R.F., Granger, C.W.J. (1987) Co-integration and error correction: representation, estimation, and testing. Econometrica 55(2), 251-276.   DOI
18 Harris, R., Sollis, R. (2003) Applied Time Series Modelling and Forecasting. Wiley: West Sussex.
19 Hossain, A.K.M.N., Hasanuzzaman, S. (2016) The Impact of Energy Consumption, Urbanization, Financial Development and Trade openness on the Environment in Bangladesh: An ARDL Bound Test Approach. Retrieved November, 2016, from http://bea-bd.org/site/images/pdf/28.pdf
20 Ohlan, R. (2015) The impact of population density, energy consumption, economic growth and trade openness on $CO_2$ emissions in India. Natural Hazards 79(2), 1409-1428.   DOI
21 Ozturk, I., Acaravci, A. (2010) The causal relationship between energy consumption and GDP in Albania, Bulgaria, Hungary and Romania: evidence from ARDL bound testing approach. Applied Energy 87(6), 1938-1943.   DOI
22 Pesaran, M.H., Shin, Y. (1999) An autoregressive distributed lag modelling approach to cointegration analysis. Econometrics and Economic Theory in the 20th Century: The Ragnar Frish Centennial Symposium., Cambridge University Press, Cambridge, 371-413.
23 Pesaran, M.H., Shin, Y., Smith, R.J. (2001) Bound testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289-326.   DOI
24 Rahman, M.Z. (2013) Relationship between trade openness and carbon emission: A case of Bangladesh. Journal of Empirical Economics 1(4), 126-134.
25 Akhmat, G., Zaman, K., Shukui, T., Irfan, D., Khan, M.M. (2014) Does energy consumption contribute to environmental pollutants? Evidence from SAARC countries. Environmental Science and Pollution Research 21(9), 5940-5951.   DOI
26 Akin, C.S. (2014) The impact of foreign trade, energy consumption and income on $CO_2$ emissions. International Journal of Energy Economics and Policy 4(3), 465-475.
27 Long, X., Naminse, E.Y., Du, J., Zhuang, J. (2015) Nonrenewable energy, renewable energy, carbon dioxide emissions and economic growth in China from 1952 to 2012. Renewable and Sustainable Energy Reviews 52, 680-688.   DOI
28 Islam, M.R., Cheng, Y., Rajib, M.S.U. (2012) International trade and carbon emissions ($CO_2$): The case of Bangladesh. Journal of Economics and Sustainable Development 3(5), 18-26.
29 Johansen, S. (1988) Statistical analysis for cointegration vectors. Journal of Economic Dynamics and Control 12(3), 231-254.   DOI
30 Lee, C., Chiu, Y., Sun, C. (2009) Does one size fit all? A re-examination of the environmental Kuznets curve using the dynamic panel data approach. Review of Agricultural Economics 31, 751-778.   DOI