• ISSN: 2155-7950
  • Journal of Business and Economics

Trade Liberalization, Financial Development and Chinese Inter-provincial

Carbon Emissions

Chun-peng Zhang1, Chen Feng2, Rong Kang1
(1. Northwest University, China; 2. University of New South Wales, Australia)
Abstract: Based on the Global Malmquist-Luenberger (GML) index, this paper decomposed the source of carbon dioxide emissions into scale effect, structural effect and technological effect. And then authors used the panel differential Generalized Method of Moments (diff-GMM) model to estimate them. At last, the results show that: (1) carbon emissions in the last period have a significant demonstration effect on the current, so carbon emissions are self-motivated. (2) The scale effect and technological effect of trade liberalization are positive and the structural effect is negative. As a result, the total effect is positive. In a word, trade liberalization can increase carbon emissions. For financial development, the scale effect and structural effect are negative, while the technical effect is positive. So the total effect is positive, and the improvement of financial development level also promotes the increase of carbon emissions.
Key words: GML index; scale effect; structural effect; technological effect; diff-GMM

JEL codes: G10, F18


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