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Saudi Journal of Economics and Finance (SJEF)
Volume-4 | Issue-04 | 149-161
Original Research Article
The Linkage between Trade Openness, Energy Consumption, GDP, Urban Population and Carbon Dioxide Emission: Evidence from BRI countries
Nadeem Jan
Published : April 27, 2020
DOI : 10.36348/sjef.2020.v04i04.003
Abstract
This study analyzes the impact of trade openness, economic growth, energy consumption and urban population on carbon dioxide emission by using annual data of 50 Belt and Road countries for the period 1992 to 2014. Further the study also analyzes three regions groups of the Belt and Road. The study applied Pooled OLS, Fixed effect, Random effect and GLS models to the realization of this investigation. The fixed-effect model elicited that trade openness mitigated carbon dioxide emission While economic growth, energy consumption, and urban population has proved to be harmful for the environment in overall sample, GLS also supported the same finding. The empirical results suggest that policymakers should consider to ensure and facilitate more trade openness, reduce the usage of carbon fossil fuel, regulate environmental policy, e.g., Carbon tax or pollution permits on pollution-intensive goods to reduce emission and increase dependency on renewable energy. Moreover, encourage economy liberalization with the intention to bring more investments in energy efficiency technologies and access to products with high energy efficiency as well as create the general public awareness of eco-friendly investments and green energy in BRI economies that reduces carbon dioxide emissions.
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