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Asymmetric Impact of International Trade on Consumption-Based Carbon Emissions in MINT Nations

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  • Tomiwa Sunday Adebayo

    (Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia 99040, Turkey
    Department of Finance & Accounting, AKFA University, 1st Deadlock, 10th Kukcha Darvoza Street, Tashkent 100042, Uzbekistan)

  • Abraham Ayobamiji Awosusi

    (Department of Economics, Faculty of Economics and Administrative Science, Near East University, North Cyprus, Mersin 99040, Turkey)

  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, Haspolat 99040, Turkey)

  • Mirela Panait

    (Department of Cybernetics, Economic Informatics, Finance and Accounting, Petroleum-Gas University of Ploiesti, 100680 Ploiești, Romania)

  • Catalin Popescu

    (Department of Business Administration, Petroleum-Gas University of Ploiesti, 100680 Ploiești, Romania)

Abstract

The association between carbon emissions and international trade has been examined thoroughly; however, consumption-based carbon emissions, which is adjusted for international trade, have not been studied extensively. Therefore, the present study assesses the asymmetric impact of trade (import and export) and economic growth in consumption-based carbon emissions (CCO 2 ) using the MINT nations (Mexico, Indonesia, Nigeria and Turkey) as a case study. We applied the Nonlinear ARDL to assess this connection using dataset between 1990 and 2018. The outcomes from the BDS test affirmed the use of nonlinear techniques. Furthermore, the NARDL bounds test confirmed long-run association between CCO 2 and exports, imports and economic growth. The outcomes from the NARDL long and short-run estimates disclosed that positive (negative) shocks in imports increase (decrease) CCO 2 emissions in all the MINT nations. Moreover, positive (negative) shocks in exports decrease (increase) CCO 2 emissions in all the MINT nations. As expected, a positive shock in economic growth triggers CCO 2 emissions while a negative shift does not have significant impact on CCO 2 emissions in the MINT nations. Furthermore, we applied the Gradual shift causality test and the outcomes disclose that imports and economic growth can predict CCO 2 emissions in the MINT nations. The study outcomes have significant policy recommendations for policymakers in the MINT nations.

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  • Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Husam Rjoub & Mirela Panait & Catalin Popescu, 2021. "Asymmetric Impact of International Trade on Consumption-Based Carbon Emissions in MINT Nations," Energies, MDPI, vol. 14(20), pages 1-19, October.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:20:p:6581-:d:655000
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