Globalization and CO2 emissions in the presence of EKC: A global panel data analysis

The relationship between globalization and environmental quality has drawn intensive attention in recent years. However, few studies have focused on global evidence considering the diverse dimensions of globalization outside of economic globalization. Moreover, evidence on the effects of globalization on environmental quality does not provide clear patterns. This study analytically explores and empirically tests the links of globalization with environmental quality. For empirical analysis, a large panel data of 180 countries is assembled over the period 1980-2016. The empirical results show that globalization helps to ameliorate environmental degradation. Panel quantile regression results also support the favor-able role of globalization mainly for economies with existing low levels of carbon emissions. However, the decomposition of globalization into different domains reveals that this finding cannot be generalized for all dimensions of globalization. In particular, this study finds out robust evidence that economic glob-alization is harmful to environmental sustainability. However, political globalization has been shown as a tool for enhancing environmental quality. Finally, the environmental Kuznets curve is validated in all models. These findings remain consistent with different robustness checks.(c) 2022 International Association for Gondwana Research. Published by Elsevier B.V. All rights reserved.

Automated summary

The relationship between globalization and environmental quality is complex. Economic globalization is detrimental to environmental sustainability, while political globalization contributes to improving environmental quality.