Impact of globalization on CO2 emissions in Vietnam: An autoregressive distributed lag approach

Abstract

This study aims at investigating the impact of globalization on CO2 emission in Vietnam. Empirical analysis is performed by employing autoregressed distributed lag approach on time series data for the period of 1990 to 2016. The paper tested the stationary, cointegration of time series data and utilized autoregressed distributed lag modeling technique to determine the short run and long run relationship among CO2 emission, globalization, foreign direct investment, exports, coal consumption per capita and fossil fuels electricity generation. The results show that globalization increases CO2 emission in Vietnam and thus globalization is not beneficial for the long-term environmental health. Exports lowers CO2 emissions in both short run and long run whereas coal consumption per capita and fossil fuels electricity generation raise CO2 emissions. The study further shows that foreign direct investment did not affect CO2 emissions directly in short run as well as in long run.

Keywords

• co2 emissions
• exports
• coal consumption
• cointegration