Globalization and Carbon Constrained Global Economy: A Fad or a Trend?

Abstract

The authors analyze how globalization affects carbon emission reductions in the context of sustainable development using panel data for 255 countries during 1980 to 2011. First, estimation results illustrate that globalization is a positive factor to reduce carbon emissions. Second, the authors find that the intermediate effect of technology to reduce carbon emission is more evident for an economy with a higher level of globalization than autarkic economies. Findings also suggest that globalization of an economy itself and in conjunction with the use of technology play an important role to facilitate carbon emission reductions.

KEYWORDS:

• globalization
• climate change
• carbon economy
• carbon emissions
• sustainable development

FUNDING

The authors would like to acknowledge the financial support of Griffith University (NRG), and Griffith Business School (IRG).

The article is the result of NRG and IRG projects funded by Griffith University and Griffith Business School in Australia.

Notes

1. 1. Estimation results using current year variable show similar outcomes.