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Role of trade liberalization, industrialisation and energy use on carbon dioxide emissions in Australia: 1990 to 2018

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Abstract

Australia is one of the largest nations in the globe in terms of land area and is home to numerous animals alongside unique and unusual climates and immense forests and oceans. Despite having a very tiny population, the nation is an extremely valuable ecological territory. Unfortunately, due to several changes in land use, habitat loss and deterioration—particularly in light of the recent severe bush fires exacerbated by climate change—the environmental issues in Australia have got the attention of many academics. Therefore, this paper seeks to assess the association between Australia’s energy use, \({\mathrm{CO}}_{2}\) emission, trade liberalization, industrialization and economic growth from 1990 to 2018. An autoregressive distributed lag and a vector error correction model (VECM) are employed to take care of possible endogeneity and the long-run association. Our results demonstrated that economic growth and energy use have positive and statistically significant effects on emissions of \({\mathrm{CO}}_{2}\), but trade liberalization has a significantly adverse influence on emissions of \({\mathrm{CO}}_{2}\) both in the long and short term. Granger test in VECM uncovered single-direction Granger interrelationships among trade liberalization and industrialization, as well as among industrialization and carbon dioxide. When attempting to implement effective energy policies, Australian policymakers should first take into account the prominent role played by energy usage and trade liberalization in promoting economic development and impeding environmental health.

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Acknowledgements

We acknowledge the suggestions and guidelines provided by Dr. Md. Mahmudul Alam, Univesiti Utara Malaysia.

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Authors and Affiliations

  1. School of Islamic Business Studies, Universiti Utara Malaysia, Changlun, Malaysia

    Mohamud Said Yusuf & Khadar Ahmed Dirie

  2. Department of Economics, University of Tasmania, Tasmania, Australia

    Hammed Oluwaseyi Musibau

  3. University of Economics, Ho Chi Minh City, Vietnam

    Hammed Oluwaseyi Musibau

  4. School of Accounting, Finance and Economics (SAFE), The University of Waikato, Hamilton, New Zealand

    Waliu Olawale Shittu

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Mr. MSY is primarily responsible for writing manuscripts, data analysis, interpretation and article formatting following journal requirements. Mr. KAD coordinated the introduction and English editing. Dr. HOM contributed to the findings and conclusion and edited, evaluated and provided manuscript recommendations. The final manuscript was reviewed and endorsed by each author. Waliu Shittu reviewed and revised the entire manuscript based on the reviewers’ feedback.

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Yusuf, M.S., Musibau, H.O., Dirie, K.A. et al. Role of trade liberalization, industrialisation and energy use on carbon dioxide emissions in Australia: 1990 to 2018. Environ Sci Pollut Res 30, 79481–79496 (2023). https://doi.org/10.1007/s11356-023-27825-1

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