Original scientific paper
https://doi.org/10.1080/1331677X.2020.1860111
Does Energy Productivity and Technological Innovation Limit Trade-Adjusted Carbon Emissions?
Salman Wahab
Xibao Zhang
Adnan Safi
Zeeshan Wahab
Maaz Amin
Abstract
The present study aims to examine the effect of energy productivity, international trade, especially by treating exports and
imports distinctly with technological innovation and gross domestic product on Consumption-based Carbon emissions for G-7
countries over the period of 1996–2017. This study employed
cross-section dependence and slope heterogeneity for evaluating
the order of unit root. The cross-sectionally augmented autoregressive distributed lags model (CS-ARDL) is used for evaluating
long and short-run relationships among variables; and an augmented mean group and a common correlated mean group test
to check for robustness. The findings confirm cointegration relationships with structural breaks (e.g., the 2001 mild recession; the
2008 global financial crisis; the 2011 stock market decline; and
the 2014 exports decline in Italy, France, the United Kingdom and
Japan) among consumption based carbon emission, energy productivity, exports, imports, gross domestic product, and technological innovation. Further, energy productivity, exports and
technological innovation are inversely related to consumption
based carbon emission while imports and gross domestic product
are positively associated with consumption-based carbon emissions for G-7 countries. The findings recommend the promotion
of technological innovation and cleaner production for curbing
consumption-based carbon emissions.
Keywords
CO2 Emissions; G-7 countries; energy productivity; technological innovation; international trade
Hrčak ID:
301264
URI
Publication date:
31.12.2021.
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