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.