Asymmetric impacts of globalisation on CO2 emissions of countries in Latin America and the Caribbean

This research contributes to analysing the complexities of the pressure of globalisation on CO2 emissions. The asymmetrical impacts of globalisation on CO2 emissions of 18 Latin American and Caribbean countries for the period from 1990 to 2014 was researched via a panel non-linear autoregressive distributed lag approach, controlling for renewable energy consumption and fossil fuel consumption. The results indicate that globalisation, as well as globalisation index components such as economic globalisation, social globalisation and political globalisation, exert an adverse impact on CO2 emissions. The extension of the model by the inclusion of asymmetric effects and the decomposition of globalisation on its components reveals that the base model as well as the methodology used is robust given that the results also point to the same conclusions. Nevertheless, while the asymmetric impacts statistically significant in general, they were not dissimilar. The phenomena of globalisation could exert a severe effect in aggravating the CO2 emissions that policymakers should foresee and oppose.