The Link Between Trade Openness, Economic Growth, Energy Use and Carbon Emissions: Analysis with a Conceptual Model Proposal

Abstract

This study examines the relationship between trade openness, economic growth, energy consumption and carbon emissions (CO2) with Structural Equation Modelling (SEM) by offering a model proposal. In this context, a path analysis was carried out with SEM using the 2000-2020 period data of 83 developed and developing countries to examine the direct and indirect effects between the variables. The study's findings show that trade openness directly and significantly affects economic growth, energy consumption and CO2. When the indirect effects are examined, it has been determined that economic growth and energy consumption mediate the relationship between trade openness and CO2, and energy consumption mediates the relationship between economic growth and CO2.