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The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions

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  • Lu, Zhou
  • Mahalik, Mantu Kumar
  • Mahalik, Hrushikesh
  • Zhao, Rui

Abstract

This paper examines carbon emission growth rates in 35 OECD economies from 1970 to 2019. It analyses the effects of trade liberalisation policy on carbon emissions in interaction with democracy. Both variables serve as potential drivers of adopting emission-reducing technologies. It is observed that trade liberalisation increases carbon dioxide emissions; however, democracy reduces the carbon emission growth rates. In addition, the interaction of trade liberalisation with democracy has a positive impact on carbon dioxide emissions. These findings mean that trade liberalisation has a lessened negative effect on carbon dioxide emissions in more democratic countries. These results indicate several policy implications for the climate change crisis, given that policymakers in democracies do a better job of providing policy formation for climate change than autocracies.

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  • Lu, Zhou & Mahalik, Mantu Kumar & Mahalik, Hrushikesh & Zhao, Rui, 2022. "The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    • Handle: RePEc:eee:tefoso:v:180:y:2022:i:c:s0040162522002384
    DOI: 10.1016/j.techfore.2022.121712
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    More about this item

    Keywords

    Carbon emissions; Trade liberalisation policy; Technology adoption; International trade; Democracy; COP26 conference;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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