GAUGING GREENHOUSE EMISSION THROUGH CBA, TRADE, FDI, AND POPULATION GROWTH
Downloads
Introduction: Greenhouse gas emissions have a massive effect on the thinning of the earth's ozone layer, nowadays the industry is obligated to be as responsible for the process and output as possible in order to reduce carbon dioxide emissions (CO2). This study examines the implications of consumption-based accounting, trade, and foreign direct investment on greenhouse gas emissions from the least five emitters of different fuel types, according to the World Research Institute Indonesia, which are Japan, Brazil, Indonesia, Iran, and Canada from 2000 until 2020.
Methods: The study employs a panel data regression using Random Effect Model-Hausman Test.
Results: The findings show that foreign direct investment has a strong negative association with lowering greenhouse gas emissions. The greater the investment, the cleaner the air and atmosphere. Trade has a negative correlation with greenhouse gas emissions, this reflects increasing environmental consciousness among producers and/or increasing pressure for environmentally friendly operations from oversea. Since natural assets could convey their full economic potential on a sustainable ground. The population had a role in lowering carbon emissions as well. The results of the consumption-based emission regression show a significant positive relationship, which can clearly exacerbate climate change conditions. It is not astounding, given that CBA accounts for emissions throughout a product's or service's complete lifecycle.
Conclusion and suggestion: This study advances the grasp of greenhouse gas emissions and the factors that influence others in the five lowest emitters. It is the first study towards using greenhouse gas emission data as the dependent variable, rather than consumption-based accounting data, which has been used in most previous studies.
Al-Ghussain, L. (2019). Global warming: review on driving forces and mitigation. Environmental Progress and Sustainable Energy, 38(1), 13–21. https://doi.org/10.1002/ep.13041
Bin, X., & Jianmao, W. (2000). Trade, FDI, and International Technology Diffusion. Journal of Economic Integration, 15(4), 585–601. http://www.jstor.org/stable/23000438
Dietz, T., & Rosa, E. A. (1994). Rethinking the Environmental Impacts of Population , Affluence and Technology '. Human Ecology Review, 1(Weeh 1986), 277–300. https://doi.org/10.2307/24706840
Diffenbaugh, N. S. (2020). Verification of extreme event attribution: Using out-of-sample observations to assess changes in probabilities of unprecedented events. Science Advances, 6(12), 42–45. https://doi.org/10.1126/sciadv.aay2368
Dong, K., Hochman, G., Zhang, Y., Sun, R., Li, H., & Liao, H. (2018). CO2 emissions, economic and population growth, and renewable energy: Empirical evidence across regions. Energy Economics, 75, 180–192. https://doi.org/10.1016/j.eneco.2018.08.017
Gao, H., Gu, A., Wang, G., & Teng, F. (2019). A structural decomposition analysis of China's consumption-based greenhouse gas emissions. Energies, 12(15). https://doi.org/10.3390/en12152843
Geographic, N. (2022). Climate Change. Retrieved June 21, 2022, from https://education.nationalgeographic.org/resource/climate-change
Hsiao, C. (2007). Panel data analysis-advantages and challenges. Test, 16(1), 1–22. https://doi.org/10.1007/s11749-007-0046-x
Jijian, Z., Twum, A. K., Agyemang, A. O., Edziah, B. K., & Ayamba, E. C. (2021). Empirical study on the impact of international trade and foreign direct investment on carbon emission for belt and road countries. Energy Reports, 7, 7591–7600. https://doi.org/10.1016/j.egyr.2021.09.122
Kabdrakhmanova, M., Memon, S. A., & Saurbayeva, A. (2021). Implementation of the panel data regression analysis in PCM integrated buildings located in a humid subtropical climate. Energy, 237, 121651. https://doi.org/10.1016/j.energy.2021.121651
Khan, Z., Ali, S., Umar, M., Kirikkaleli, D., & Jiao, Z. (2020). Consumption-based carbon emissions and International trade in G7 countries: The role of Environmental innovation and Renewable energy. Science of the Total Environment, 730, 138945. https://doi.org/10.1016/j.scitotenv.2020.138945
LiobikienÄ—, G., & Butkus, M. (2019). Scale, composition, and technique effects through which the economic growth, foreign direct investment, urbanization, and trade affect greenhouse gas emissions. Renewable Energy, 132, 1310–1322. https://doi.org/10.1016/j.renene.2018.09.032
Macedo, F. D. R., Boucher, J. L., Ramonde, G. M. P., Herrera, O. E., & Mérida, W. (2021). Greenhouse gas emissions in British Columbia: Production versus consumption accounting from 2010 to 2015. Sustainable Production and Consumption, 28, 1600–1621. https://doi.org/10.1016/j.spc.2021.08.021
Muhammad, B., & Khan, M. K. (2021). Foreign direct investment inflow, economic growth, energy consumption, globalization, and carbon dioxide emission around the world. Environmental Science and Pollution Research, 28(39), 55643–55654. https://doi.org/10.1007/s11356-021-14857-8
NASA. (2022). Global Climat Change. NASA. Retrieved June 21, 2022, from https://climate.nasa.gov/effects/
Nordhaus, W. D. (2007). To Tax or Not to Tax: Alternative Approaches to Slowing Global Warming. Review of Environmental Economics and Policy, 1(1), 26–44. https://doi.org/10.1093/reep/rem008
Omri, A., Nguyen, D. K., & Rault, C. (2014). Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models. Economic Modelling, 42(October), 382–389. https://doi.org/10.1016/j.econmod.2014.07.026
Opoku, E. E. O., Adams, S., & Aluko, O. A. (2021). The foreign direct investment-environment nexus: Does emission disaggregation matter? Energy Reports, 7, 778–787. https://doi.org/10.1016/j.egyr.2021.01.035
Pearce, D. (1991). The Role of Carbon Taxes in Adjusting to Global Warming. The Economic Journal, 101(407), 938–948. http://www.jstor.org/stable/2233865
Sarkodie, S. A., & Strezov, V. (2019). Effect of foreign direct investments, economic development and energy consumption on greenhouse gas emissions in developing countries. Science of the Total Environment, 646, 862–871. https://doi.org/10.1016/j.scitotenv.2018.07.365
Schneider, P. H. (2005). International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries. Journal of Development Economics, 78(2), 529–547. https://doi.org/10.1016/j.jdeveco.2004.09.001
Schneider, U. A., Havlík, P., Schmid, E., Valin, H., Mosnier, A., Obersteiner, M., Böttcher, H., Skalskí½, R., BalkoviÄ, J., Sauer, T., & Fritz, S. (2011). Impacts of population growth, economic development, and technical change on global food production and consumption. Agricultural Systems, 104(2), 204–215. https://doi.org/10.1016/j.agsy.2010.11.003
Steininger, K. W., Munoz, P., Karstensen, J., Peters, G. P., Strohmaier, R., & Velázquez, E. (2018). Austria's consumption-based greenhouse gas emissions: Identifying sectoral sources and destinations. Global Environmental Change, 48(April 2017), 226–242. https://doi.org/10.1016/j.gloenvcha.2017.11.011
Wang, S., Zhao, T., Zheng, H., & Hu, J. (2017). The STIRPAT analysis on carbon emission in Chinese cities: An asymmetric laplace distribution mixture model. Sustainability (Switzerland), 9(12). https://doi.org/10.3390/su9122237
Wang, Y., Liao, M., Xu, L., & Malik, A. (2021). The impact of foreign direct investment on China's carbon emissions through energy intensity and emissions trading system. Energy Economics, 97, 105212. https://doi.org/10.1016/j.eneco.2021.105212
Copyright (c) 2022 Milhatun Nisa'
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with Jurnal Ekonomi dan Bisnis Airlangga agree to the following terms:The journal allows the author to hold the copyright of the article without restrictions.
The journal allows the author(s) to retain publishing rights without restrictions
The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution Share-Alike (CC BY-SA).
Jurnal Ekonomi dan Bisnis Airlangga (JEBA) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
.png)
