1. Trade and technological innovation: The catalysts for climate change and way forward for COP21.
- Author
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Su, Chi-Wei, Naqvi, Bushra, Shao, Xue-Feng, Li, Jing-Ping, and Jiao, Zhilun
- Subjects
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CLIMATE change , *TECHNOLOGICAL innovations , *TECHNOLOGICAL progress , *CLIMATE change prevention , *GROSS domestic product , *ERROR correction (Information theory) , *INTERNATIONAL trade ,PARIS Agreement (2016) - Abstract
Following the adaptation of the Paris Agreement at COP21, it was noted that the traditional measures of carbon emissions have several limitations; and a reliable and relevant carbon emissions measurement is important to formulate a response to the challenge of climate change. This study, therefore, explores the relationship between international trade and consumption-based carbon emissions, which is a trade adjusted indicator; and measures the outflow and the inflow of emissions through exports and imports separately. We also include technological innovation in the model to understand its impact on consumption-based carbon emissions. The results show that exports and consumption-based carbon emissions are negatively associated, and technological innovation helps reducing the adverse effect of CO 2 growth. In contrast, Imports and gross domestic product are positively linked with consumption-based carbon emissions. The findings also suggest the countries which embraced the Paris Climate Agreement must focus on consumption-based carbon emissions rather than the production-based carbon emissions. • We employ ARDL bound test and error correction model to analyze consumption based carbon emission in USA. • Consumption-based carbon emission is a reliable and more appropriate measure of climate change. • Technological innovation is an important factor in formulating policy response to combat climate change. • Exports play a positive role and help reducing carbon emission. • United States of America (USA) is the net importer of carbon emission. [ABSTRACT FROM AUTHOR]
- Published
- 2020
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