Is economic globalization good or bad for the environmental quality? New evidence from dynamic heterogeneous panel models

This paper employs advanced panel econometric techniques that allow for heterogeneous slope coefficients and cross-section dependence to investigate the impact of economic globalization on CO2 emissions in 15 emerging countries over the period 1970-2012. The results demonstrate that, in the long-run, a 1% increase in economic globalization reduces CO2 emissions by - 0.11%, and these results are robust across different estimation techniques. Our novel finding not only help advance the existing literature, but also deserve special attention from policy makers in emerging countries.