The role of stock markets on environmental degradation: A comparative study of developed and emerging market economies across the globe

It is well established in the literature that stock markets increase both economic activities and energy consumption across countries. Therefore, it is commonly believed that stock markets are expected to have a significant effect on CO₂ emissions. However, it is not known whether these stock markets can contribute to more or less CO₂ emissions. Hence, the goal of this study is to examine the impact of stock market indicators on CO₂ emissions across a global panel of both developed and emerging market economies. The results establish that stock market indicators have a significant negative and positive impact on carbon emissions in developed and emerging market economies, respectively. Furthermore, the findings illustrate the presence of the Environmental Kuznets Curve (EKC) hypothesis, implying that stronger stock markets lead to a further decline in carbon emissions. Given these findings, the study argues that the role of stock markets in the abatement of CO₂ emissions significantly varies across both developed and emerging market economies. Significant implications have to do with the fact that developed markets might have initiated effective policies on listed firms to minimize carbon emissions, while emerging markets are yet to achieve this.     

Energy,carbon dioxide emissions,carbon taxes and the Chinese economy

Given the global characteristics of climate change and China's potential importance as a source of CO₂ emissions, advocates of controlling CO₂ emissions call for substantial efforts in China. However, the Chinese authorities have argued that China cannot be expected to make a significant contribution to the carbon emission problem unless it receives substantial international aid for this purpose. This contrasts sharply with the wishes of the proponents of controlling CO₂ emissions. This paper is devoted to explaining this difference in opinion by examining some aspects of the Chinese energy system and by analysing the economic implications of possible future CO₂ emissions limits in China.     

CO2 emissions embodied in China’s export

ABSTRACT

The reduction of CO₂ emissions embodied in export will have an important role for China to achieve its CO₂ emissions peaking target. In this study, we use input–output analysis to examine the embodied CO₂ emissions in China’s export to its top largest trading countries from 2008 to 2015. We find that China’s exported CO₂ emissions peaked in 2008. More than 70% of embodied CO₂ emission were exported to only 20 countries, and CO₂ emissions exported to developing countries have been increasing. High-energy consumption sectors contribute to CO₂ emissions embodied in export significantly, such as Electricity, Gas and Water. We conclude that structural adjustment could be considered alongside technological improvements to curb China’s growing CO₂ emissions.     

Die Dieselkrise und die Besteuerung des Kraftfahrzeugverkehrs

Road traffic in Germany is currently subject to two specific taxes: the energy tax on fossil fuels, like diesel or gasoline, and the motor vehicle tax. However, neither can be justified by either the ability to pay principle or by the benefit principle. They cannot be defended as steering taxes either, since they do not provide appropriate incentives to influence behaviour according to the objectives of environmental policy in general and climate policy in particular. Therefore, it is suggested that the motor vehicle tax be abandoned and the energy tax be transformed into a CO₂ emissions tax. This would require tax rates on the different fossil fuels to be proportional to their respective carbon contents, which, in turn, implies a considerable rise in the price of diesel relative to that of gasoline. As the international competitiveness of German long haul transport companies would suffer if this reform were implemented nationally, a European approach to the reform of road traffic taxation is desirable.     

International negotiations on carbon dioxide reductions: A dynamic game model

Is there is a warming trend in the earth's climate caused by an increase in concentrations of greenhouse gases in the upper atmosphere, it may be sensible to try to slow down that process by reducing emissions of greenhouse gases and, in particular, the emissions of carbon dioxide produced by the energy sector of world economies. For a number of reasons, a consensus on such reductions is difficult to reach. In this article, we model the problem as a dynamic game with national governments, or coalitions of such governments, as players. Clearly, the negotiations on worldwide reductions in CO₂ emissions can succeed only if there exists a cooperative solution superior to the noncooperative one. According to our model, the existence of a collectively preferable cooperative solution depends on the degree of concern among national governments about negative impacts of increased CO₂ concentrations. In addition to this unsurprising conclusion, the model can provide insights as to whose concerns will count most for the success of the negotiations and who will have to be induced by side payments to participate.     

How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels

Significant difference in the emission–renewables nexus across countries with different income levels is frequently ignored in previous studies. To empirically investigate whether the effect of renewable energy consumption on carbon dioxide (CO₂) emissions differs across countries with different income levels, the emission–growth–renewables nexus for a global panel of 120 countries and four income-based subpanels over the period 1995–2015 is examined. Fully considering the potential cross-sectional dependence and slope heterogeneity, a series of econometric techniques allowing for cross-sectional dependence and slope heterogeneity is utilised. Cross-sectional dependence and slope heterogeneity are confirmed for the global panel as well as for all four subpanels. Only for the global panel, high-income subpanel and upper-middle-income subpanel is the environmental Kuznets curve (EKC) hypothesis valid. Renewable energy consumption has a negative effect on CO₂ emissions, but its effect is not significant; the mitigation effect may be obscured by higher economic growth and increasing non-renewable energy consumption. The global panel and four subpanels provide mixed directionality of causality among the variables, suggesting that for various income-based subpanels, significant differences exist in the effect of renewable energy consumption on CO₂ emissions, especially highlighting in various direct and indirect influencing paths between renewable energy consumption and CO₂ emissions.     

Investigating the causality links between environmental quality,foreign direct investment and economic growth in MENA countries

This paper investigates the causal relationship between environmental quality, Foreign Direct Investment and economic growth using simultaneous-equation panel data VAR model a panel of 17 MENA countries over the period 1990–2012. Our empirical results pointed out that there is a unidirectional causality running from both FDI stocks and CO₂ emissions to economic growth. They also indicate the existence of unidirectional causality running from economic growth to CO₂ emissions. However, the results support the occurrence of unidirectional causality from FDI stocks to CO₂ emissions. Our empirical result confirms the hypothesis of neutrality for the Environment-GDP link. There is bidirectional causality from ${\text{CO}}_2$emissions and economic growth, and a bidirectional causal relationship between FDI stocks and CO₂ emissions. For the global panel, we show that the existence of a unidirectional causality running from FDI stocks to economic growth; a bidirectional causality between economic growth and CO₂ emissions; as well as a bidirectional causality between FDI stocks and ${\text{CO}}_2$emissions.     

Dynamic causality testing for EKC hypothesis,pollution haven hypothesis and international trade in India

This study examines the causality relationships between foreign direct investment (FDI), economic growth (GDP) and CO₂ emissions along with the level of trade (exports and imports) taking place in India. The study uses data obtained from World Development Indicators (WDI) of World Bank Group for the period 1982–2013. The study employed the dynamic multivariate Toda-Yamamoto (TY) approach that uses the modified Wald (MWALD) test. Among the major findings of the study are: the existence of both Pollution Haven Hypothesis and Environmental Kuznets Curve (EKC) hypothesis in India. The other findings of the study are: FDI is causing exports; exports are causing imports; imports are causing CO₂ emissions; and finally CO₂ emissions and GDP are causing each other. This finding concludes mainly two things. First, India imports more of pollution-intensive manufactured goods. Second, FDI is causing GDP in India but through CO₂ emissions.     

The relationship between Co2 emissions,energy consumption,economic growth and FDI: the case of Turkey

This study investigates the relevance of the environmental Kuznets curve (EKC) hypothesis in Turkey for the period 1974–2010 using carbon dioxide (CO₂) emissions, energy consumption, economic growth, and foreign direct investment (FDI) variables. The long-run equilibrium relationship among CO₂ emissions, energy consumption, economic growth, and FDI is revealed using the bounds test. The error correction model under autoregressive-distributed lag mechanism suggests that CO₂ emissions converge to their long-run equilibrium level by a 49.2% speed of adjustment every year by the contribution of energy consumption, economic growth, and FDI. The Toda–Yamamoto (1995 Toda, H.Y., and T. Yamamoto. 1995. “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes.” Journal of Econometrics 66 (1): 225–250.[Crossref], [Web of Science ®] , [Google Scholar]) causality test results imply that carbon emissions and FDI, energy consumption, and CO₂ emissions have bidirectional causal relationships. On the other hand, there are unidirectional causal relationships running from economic growth and energy consumption to FDI and from economic growth to energy consumption. Our findings provide evidence of the validity of the pollution haven hypothesis, in addition to the scale effect, and the EKC in the case of Turkey.     

A global compass for the great divergence: Emissions versus production centres of gravity 1820–2008

We construct the world's centres of gravity for human population, GDP and CO₂ emissions by taking the best out of five recognised data sources covering the last two centuries. On the basis of a novel distortion‐free representation of these centres of gravity, we find a radical Western shift of GDP and CO₂ emission centres in the nineteenth century, in sharp contrast with the stability of the demographic centre of gravity. Both GDP and emissions trends are reversed in the first half of the twentieth century, after World War I for CO₂ emissions, after World War II for GDP. Since then, both centres are moving eastward at an accelerating speed. These patterns are perfectly consistent with the lead of Western countries starting the industrial revolution, the gradual replacement of coal by oil and gas as alternative sources of energy and the progressive catch‐up of Asian countries in the recent past.     

Socioeconomic Effects of Reducing Household Carbon Footprints Through Meat Consumption Taxes

Beef and sheep products represent the largest emitters of greenhouse gases within the meat group. One way of encouraging Scottish households to substitute purchasing lower carbon footprint meat products such as chicken is through a carbon consumption tax. In this article, the effects of such a tax were studied using a dynamic per capita error correction version of the almost ideal demand system (AIDS). The data used in the analysis were from a Scottish household panel dataset for the years 2006–2011, which allowed disaggregation by three socioeconomic groups. The results suggest that the net application of meat taxes is likely to reduce demand for beef and sheep products irrespective of socioeconomic group. Application of all meat carbon consumption taxes has the potential to reduce household demand for meat products, resulting in a likely 10.5% reduction in Scottish meat emissions.     

ENVIRONMENTAL IMPACTS OF TRADE IN INDIA

Abstract

This article aims at contributing to environment trade debate by evaluating the impacts of international trade on emissions of carbon dioxide, sulphur dioxide, and nitrogen oxides for the Indian economy during 90s using Input-Output techniques. The article has constructed an index of pollution terms of trade. Using the Input-Output table of 1991–92 and 1996–97 for India we have computed pollution terms of trade for the content of CO₂, SO₂, and NO _x . Results show that the indices are below 100, indicating that India produces goods that are more environment friendly than goods it imports, thus challenging the pollution haven hypothesis for India. The article has also offered explanations for these results.     

Coordinating climate and trade policies: Pareto efficiency and the role of border tax adjustments

This paper explores the role of trade instruments in globally efficient climate policies, focusing on whether or not some form of border tax adjustment (BTA) is warranted when carbon prices differ internationally. The analysis shows that, while there is no case for BTA when all instruments can be freely deployed, Pareto-efficiency does require a form of BTA when carbon taxes in some countries are constrained: its purpose then is to partly counteract the impact on emissions of inappropriate carbon pricing there, or, equivalently, to undo the trade distortions such pricing creates. The required form of BTA is generally complex, but a special case is identified in which it optimally has the simple structure envisaged in practical policy discussions. It is also shown that the efficiency case for BTA depends critically on whether climate policies are pursued by carbon taxation or by cap-and-trade.     

Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?

Based on a sample of 1974–2016 annual data of Vietnam, we show that the EKC does not exist in the short run but only in the long run. However, the N-shape describes better the long-run income-pollution relationship. This implies that Vietnam can expect a temporary reduction in CO₂ emissions at a given stage of economic growth. However, this will be followed by a further increase of CO₂ emissions after reaching another income turning point. The Vietnamese government should thus focus on long-term economic and environmental strategies. A robustness check shows that these results are not impacted by the variables' selection.     

Trade openness,urbanization and CO2 emissions: Dynamic panel data analysis of middle-income countries

Using the Pooled Mean Group (PMG) approach of Pesaran, Shin, and Smith [1999. “Pooled Mean Group Estimation of Dynamic Heterogeneous Panels.” Journal of the American Statistical Association 94 (446): 621–634], this article attempts to empirically examine the heterogeneous effects of trade openness and urbanization on CO₂ emissions in 55 middle-income countries over the period from 1992 to 2012. We find that trade openness has a benign effect on the environment in the short run, but a harmful effect in the long run. Meanwhile, our results show that urbanization has a negative and significant impact on CO₂ emissions both in the short and long run, implying that urbanization improves environmental quality. The results are robust even after controlling for a number of factors such as economic or non-economic factors.     

Welfare Effects of Food Miles Labels

We assessed the consumer welfare effects of two generic food miles labels: “carbon dioxide (CO₂) emission” label and “time and number of kilometers” label. Using data from a choice experiment, our results generally suggest that a mandatory labeling policy for either type of label would have a positive welfare effect. However, a label informing consumers about the time and number of kilometers the food product has traveled provides greater positive welfare effects than a label informing consumers about the amount of CO₂ emission .     

Convergence in pollution terms of trade

To construct pollution terms of trade (PTT) on the basis of CO₂ emissions, we implement the world input–output tables for 40 countries by 35 industries to account for intermediate trade. We examine whether the PTTs have converged among the 40 countries between 1995 and 2009. The empirical evidence supports PTT convergence; PTT growth is negatively related to its initial level and this empirical result is robust to various control variables.     

The role of oil and gas in China's energy strategy: an overview

China is well endowed with energy resources, having large quantities of coal, oil, gas and hydropower, as well as tremendous solar, wind and biomass energy potential. It even has its own uranium. To date, the country has relied mainly on coal and hydropower to generate its electricity and on oil to power its vehicles. However, with climate change and consequent rising sea levels, increased incidence of drought, intense storms, etc., China, having become the world's largest emitter of CO_2, is under strong international pressure to re-examine its energy strategy and find ways to reduce its carbon emissions. Thus, the government plans to greatly increase its use of natural gas in power generation. Gas emits less than half the CO₂ that coal emits. It is argued here that over the next 20 years, massive imports of gas via pipeline and liquefied natural gas tankers, combined with the development of unconventional gas reserves in the country may partly substitute for the large quantities of coal currently being used to generate electricity, but will not likely completely replace them. As for transport fuels, China, like all other countries, has little choice but to continue relying on oil regardless of whether it is imported or China develops its own large-scale shale oil operations. There is no alternate fuel of the same density available at the same or better price. The use of biofuels and electric/hybrid vehicles will not supplant the use of gasoline or diesel in the near future. Thus, the role of oil and gas in China's energy strategy are set to remain very significant over the next 20 years.     

Implementing Carbon Tariffs: A Fool’s Errand?

The absence of a global treaty on climate change abatement raises the chances that jurisdictions across the world will adopt substantially different approaches to greenhouse gas emissions. This further increases the possibility that some governments might consider taxes on imports based on carbon content from countries that have not introduced similarly restrictive climate change policies. Such border taxes certainly appeal to domestic industries facing higher charges for their own carbon emissions. This research demonstrates that there are enormous practical difficulties surrounding such plans. Various policies are evaluated based on the following constraints: adherence to World Trade Organisation compliance, administrative plausibility, help in meeting environmental goals and ability to deal with domestic pressures. The steel industry is used as a case study in this analysis. All considered policies arguably fail to meet at least one of these constraints, bringing into question the plausibility that a carbon border tax can be practical policy.     

Rettet die Energiewende? Warum eigentlich?

After the Fukushima accident, the German government decided to change the energy system in a dramatic way (the energy transition). The core of this project is the transition from a fossil fuel based system to a system that relies heavily on the use of renewable energies. In this paper, it is argued that this transition is not a rational answer to the climate change problem. In particular, the use of feedin tariffs neither leads to an efficient reduction of CO₂ emissions nor is it a rational strategy for any other political aim under discussion.