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Impacts of trade and institutional quality on carbon emissions in transition economies

Author

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  • Nam, Hyun-Jung
  • Ryu, Doojin

Abstract

We examine the effects of trade and institutional quality on carbon emissions from European transition economies. Trade initially negatively impacts the environment through greater CO2 emissions but eventually contributes to a reduction of CO2 emissions beyond a certain threshold. Institutional quality including control of corruption contributes to CO2 emission reductions. Connecting trade with environmental solutions, we identify an inverted U-shaped relationship between trade volume and carbon emissions.

Suggested Citation

  • Nam, Hyun-Jung & Ryu, Doojin, 2024. "Impacts of trade and institutional quality on carbon emissions in transition economies," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009024
    DOI: 10.1016/j.frl.2024.105872
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    More about this item

    Keywords

    Carbon emission; European transition economy; Institutional quality; Trade;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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