Causal dynamics between the degree of trade openness, new energy consumption and environmental development in the direction of economic growth by applying the dynamic systems approach
Subject Areas : environmental management
sara mohri
1
,
hosein sharifi renani
2
*
,
saeed daeekarimzade
3
1 - PhD student in economics, Isfahan (Khorasgan) branch, Islamic Azad University, Isfahan, Iran.
2 - Associate Professor, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran. * (Corresponding Author)
3 - Associate Professor, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
Keywords: degree of trade openness, new energy consumption, environment, economic growth, dynamic system torque model.,
Abstract :
Background and Objective: Countries that are developing at a faster pace and the development index in these countries has a growing trend, the amount of environmental pollution in the form of greenhouse gas emissions (CO2) in these countries has taken an increasing trend. However, economic development and, as a result, the increase in trade development index is not an effective factor in environmental pollution by itself, and the production and release of pollution is a function of the economic growth process of these countries, according to which carbon dioxide is the most important greenhouse gas from energy consumption in economic activities in the path of growth. The economy of these countries is emitted. In the current study, the causal dynamics between the degree of trade openness, consumption of new energy and environmental development in the direction of economic growth in selected developed and developing countries during the time period of 2002-2022 and using the dynamic system torque model have been investigated.
Material and Methodology: In the present study, following the study of (2023), Zhao et al. (2023), Win et al. (2022) and Makhdoom et al. Trade openness, new energy consumption and environmental development in the direction of economic growth in selected developed and developing countries for the time period of 2002-2022 are discussed using the dynamic system torque model.
Findings: The estimated relationships in the selected developed countries indicate the positive influence of the new energy variable and trade volume on the GDP in the first model. In the second model, the increase in GDP by 0.02 and the degree of trade openness by 0.63 units increases the consumption of new energy. In the third model, GDP and new energy consumption increases trade by 0.68 and 0.05 units, respectively. For the selected developing countries, the increase in new energy consumption and the degree of trade openness in the first model increases the GDP by 0.30 and 0.44 units. In the second model, the increase in GDP and environmental pollution have no effect on new energy consumption. In the third model, GDP increases trade by 0.51 units, and new energy consumption has no effect on the degree of trade openness.
Discussion and Conclusion: As the per capita production level of selected developing countries increases, the level of pollution also increases. This trend shows the warning that in these countries, not much effort is made to protect the environment by reaching a high level of income, and it is necessary for the selected developing countries, like advanced countries, to spend a part of their income to protect the environment as much as possible. Or use methods that cause less pollution and damage to the environment in their growth path.
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