Published August 31, 2022 | Version v1
Journal article Open

The Environmental Impact of Trade Openness, Energy Consumption and Economic Growth in Malawi

Authors/Creators

  • 1. Copperbelt University, Zambia

Description

Abstract: Carbon dioxide (CO2) is a primary greenhouse gas and has been on an upward trend over the past four decades at global, regional, and country levels. It has significant economic, health, and environmental costs including global warming. In Malawi, CO2 emissions have grown by 45% over the past four decades from 0.7 million tonnes in 1980 to 1.5 million in 2019. During the same period, exports and imports relative to gross domestic product (GDP) declined, and energy consumption and GDP increased. These trends do not explain the empirical relationship between trade, energy consumption, and GDP on one hand, and CO2 emissions on the other hand. Therefore, this study was aimed at investigating the impact of trade, energy consumption and GDP on CO2 emissions. The study used time series data from 1980 to 2020 and employed the Autoregressive Distributed Lag (ARDL) approach to cointegration to establish the short and long-run relationships. The study established that trade has a positive relationship with CO2 emissions both in the short and long run while GDP has a positive relationship with CO2 emissions the in short run only. The study further established that energy consumption has no significant impact on CO2 emissions. It is recommended that policy should focus on promoting the importation of environmentally friendly technologies rather than limiting the country’s openness to trade.

Keywords: autoregressive distributed lag, carbon dioxide, energy consumption, gross domestic product, Malawi, trade openness­­­.

Title: The Environmental Impact of Trade Openness, Energy Consumption and Economic Growth in Malawi

Author: Dalitso Laviwa

International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)

ISSN 2349-7807

Vol. 9, Issue 3, July 2022 - September 2022

Page No: 82-99

Paper Publications 

Website: www.paperpublications.org

Published Date: 31-August-2022

DOI: https://doi.org/10.5281/zenodo.7038588

Paper Download Link (Source)

https://www.paperpublications.org/upload/book/The%20Environmental%20Impact-31082022-8.pdf

Notes

International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), ISSN 2349-7807, Paper Publications, Website: www.paperpublications.org

Files

The Environmental Impact-31082022-8.pdf

Files (636.2 kB)

Name Size Download all
md5:97d6cbe13ee3fe95074b2fdd8e6221f3
636.2 kB Preview Download

Additional details

Related works

Is published in
Journal article: 2349-7807 (ISSN)
Journal article: https://www.paperpublications.org/upload/book/The%20Environmental%20Impact-31082022-8.pdf (URL)

References

  • [1] Akin, C. S. (2014). The Impact of Foreign Trade, Energy Consumption and Income on Co2 Emissions. International Journal of Energy Economics and Policy, 4(3), 465-475.
  • [2] Akpan, G., & Akpan, U. (2012). Electricity Consumption, Carbon Emissions and Economic Growth in Nigeria. International Journal of Energy Economics and Policy, 292-306.
  • [3] Antweiler, W., Copeland, B., & Taylor, M. S. (2001). Is free trade good for the environment? American Economic Review, 91(4), 877–908.
  • [4] Benli, M. (2019). The Long-Run Effects of Trade and Income on Carbon Emissions: Evidence from Heterogeneous Dynamic Panel of Developing Countries. Balkan and Near Eastern Journal of Social Sciences, 5(4).
  • [5] Bernard, J., & Mandal, S. (2016). The Impact of trade openness on environmental quality: an empirical analysis of emerging and developing economies. WIT Trans Ecol Environ, 195-208.
  • [6] Buchholz, W., & Peters, W. (2005). Justifying the Lindhl Solution as an Outcome for Fare Competition. CESifo Working Paper.
  • [7] Callan, S. J., & Thomas, J. M. (2013). Environmental economics and management: Theory, policy, and applications. Cengage learning.
  • [8] Chebbi, H., Olareaga, M., & Zitouna, H. (2011). Trade Openness and CO2 Emissions in Tunisia. Middle East Development Journal, 3(1), 29–53. doi:10.1142/S1793812011000314
  • [9] Cowell, F. (2004). Microeconomics: Principles and Analysis. London.
  • [10] Dogan, E., & Turkekul, B. (2016). CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environmental Science and Pollution Research, 1203-1213.
  • [11] Etokakpan, M., Adedoyin, F., Vedat, Y., & Bekun, F. (2020). Does globalization in Turkey induce increased energy consumption: insights into its environmental pros and cons. Environmental Science and Pollution Research, 26125–26140.
  • [12] Gamula, G., Hui, L., & Peng, W. (2013). An Overview of the Energy Sector in Malawi. Energy and Power Engineering, 8-17.
  • [13] Global Carbon Project. (2021). Supplemental data of Global Carbon Project 2021 (1.0) [Data set]. Global Carbon Project. doi:10.5281/zenodo.5569235
  • [14] Greene, W. H. (2011). Econometric Analysis (7th ed.). Prentice Hall.
  • [15] Grossman, G., & Krueger, A. (1993). Environmental Impacts of a North American Free Trade Agreement. The U.S.-Mexico Free Trade Agreement.

Subjects

Paper Download Link (Source)
https://www.paperpublications.org/upload/book/The%20Environmental%20Impact-31082022-8.pdf