Topic: Effects of globalization and trade on the environment. An Environmental Kuznets Curve Hypothesis Subtopic: should globalization and trade be at the expense of the physical environment?

Abstract

Abstract The focus of this paper is to explore the effects of globalization and trade on the environment by incorporating the environmental Kuznets curve hypothesis (EKC). The paper uses panel data spanning 1985-2019 from a global standpoint by taking data from 100 developing and developed countries ranging from Europe, Asia, the pacific, Africa, Latin America, etc. The top seven sectors that are the biggest polluters are analyzed. This includes transport, Energy (electricity and heating), agriculture, fashion, technology, manufacturing and construction and food retail. This is done in order to check per capita output level and carbon dioxide emissions for the different sectors. Secondly, the autoregressive distributed lag (ARDL) model is used which allows us to evaluate valid and consistent results. The study adds to the existing literature as it recommends a sustainable solution that can be applied to countries for carbon emission reduction and challenges of globalization in the presence of trade. Keywords: EKC, Trade, ARDL Model, CO2 emissions, Globalization