The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions

This paper examines carbon emission growth rates in 35 OECD economies from 1970 to 2019. It analyses the effects of trade liberalisation policy on carbon emissions in interaction with democracy. Both variables serve as potential drivers of adopting emission-reducing technologies. It is observed that trade liberalisation increases carbon dioxide emissions; however, democracy reduces the carbon emission growth rates. In addition, the interaction of trade liberalisation with democracy has a positive impact on carbon dioxide emissions. These findings mean that trade liberalisation has a lessened negative effect on carbon dioxide emissions in more democratic countries. These results indicate several policy implications for the climate change crisis, given that policymakers in democracies do a better job of providing policy formation for climate change than autocracies.

Automated summary

This paper examines the effects of trade liberalisation policy and democracy on carbon emissions and finds that trade liberalisation increases carbon emissions, while democracy reduces the growth rates of carbon emissions. The interaction between trade liberalisation and democracy also has a positive impact on carbon emissions, indicating that trade liberalisation has a less negative effect on carbon emissions in more democratic countries. These findings have important policy implications for addressing the climate change crisis.