Recent scenario and nexus of globalization to CO2 emissions: Evidence from wavelet and Quantile on Quantile Regression approach

Abstract

The ubiquitous increase in globalization and high carbon emissions, aiming to achieve non-zero emissions in the future, is a feasible challenge for a sustainable environment. Our study aims to investigate the impact of economic globalization on carbon emissions of the developed country covering the period of 1970–2019. The Wavelet Coherence (WC) and Quantile on Quantile Regression (QQR) approach have been used to analyse co-movements and feedback linkages of CO2 emissions with globalization, economic growth, and consumption of coal at different quantiles. The results obtained from WC show that there exist significant positive co-movements in the in-phase and leading globalization, economic growth, coal consumption with CO2 emissions. Further, the results of QQR indicate the existence of a positive and significant linkage between coal consumption and CO2 emissions for the majority of quantiles, the positive. Still, there is an insignificant association between CO2 with globalization and economic growth at most quantiles. Lastly, the quantile regression (QR) comparison with QQR suggests that our model is a good fit as the intercept estimates are similar and the slope coefficients follow a similar trend. To conclude, CO2 emissions have positive associations and co-movements with globalization, economic growth, and coal consumption, but their statistical significance varies and directly affects the Country.