Determinants of Greenhouse Gas Emissions
Igwe Justice Ibeabuchi 1, Chukwuemeka Amaefule 2 * , Akeem Shoaga 2
More Detail
1 Ignatius Ajuru University of Education, Port Harcourt, NIGERIA2 University of Port Harcourt, Port Harcourt, NIGERIA* Corresponding Author

Abstract

This paper examined the determinants (decomposed into enablers and de-enablers) of global greenhouse gas (GHG) emissions to deepen the debate on enhancing the implementation of the social cost of carbon or carbon pricing. Data from world development indicators were utilized in this study. The study leverages the autoregressive distributive lag model, pairwise granger causality, and impulse response function tests. This study found that there is a long-run relationship between selected economic indicators and GHG emissions in the global economy. In the long run, the GHG emissions enablers are FDI inflow and fossil fuel consumption. On the other hand, de-enablers of GHG emissions are GDP growth rate and merchandise trade. However, gas, oil, and coal use for electricity and fertilizer consumption have mixed finding across the regions. Also, the study observed that there exists no causality between GHG emissions and selected finance-related variables. A 1% shock in GHG emissions generates monetary volatility. Based on the findings that global trade generates a similar impact on GHG emissions across high-income countries, low-income countries, and middle-income countries. This study recommends the imposing of carbon tax and cap-and-trade on the GHGs polluting sectors and countries involved in the production and distribution of economic goods (activities) enabling GHG emissions.

License

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EUR J SUSTAIN DEV RES, 2022, Volume 6, Issue 4, Article No: em0194

https://doi.org/10.21601/ejosdr/12176

Publication date: 25 Jun 2022

Article Views: 460

Article Downloads: 230

Open Access References How to cite this article