Asia-Pacific Economic Cooperation Countries Research Articles

Evaluating renewable energy consumption efficiency and impact factors in Asia-pacific economic cooperation countries: A new approach of DEA with undesirable output model

Balancing economic growth with environmental protection is a global priority. Both developed and developing nations face the challenge of optimizing renewable energy use to achieve sustainable development while minimizing ecological harm. This study employs the Data Envelopment Analysis (DEA) model, incorporating undesirable output, to assess the efficiency of renewable energy consumption across 21 member countries of the Asia-Pacific Economic Cooperation (APEC) from 2011 to 2020. The main variables include foreign direct investment, total energy consumption, total renewable energy capacity as inputs, and gross domestic product growth and greenhouse gas emissions as desired outputs. Results reveal varying levels of renewable energy consumption efficiency, with Brunei, Japan, South Korea, and Hong Kong exhibiting the highest efficiency, while Russia, China, and Vietnam demonstrate the lowest. Notably, developed nations display greater efficiency in utilizing renewable energy compared to their developing counterparts. Moreover, optimizing foreign direct investment, renewable energy consumption, and total renewable energy capacity can enhance overall energy efficiency. By leveraging empirical evidence and estimation techniques, the study provides actionable recommendations for policymakers, emphasizing the pivotal role of financial development and green finance initiatives in promoting sustainable energy development across APEC member countries.

The Influence of Agricultural Exports, High-Technology Exports, Investment, and Regulatory Quality on the Gross Domestic Product of APEC Member Countries

Gross Domestic Product (GDP) is one of the macroeconomic indicators that reflects the level of welfare of a country's population. The APEC (Asia-Pacific Economic Cooperation) forum has the main goal of promoting economic growth and enhancing prosperity in the Asia-Pacific region. This is done by encouraging and facilitating more open trade and investment in the region. APEC member countries have different export characteristics, namely agricultural exports and high-technology exports. This study analyzes the influence of agricultural exports, high-technology exports, Foreign Direct Investment, and regulatory quality on the Gross Domestic Product of APEC member countries. The research data used are secondary data from the World Bank from 2011 to 2020, analyzed using the Fixed Effect Model approach of panel data regression method using E-Views 12. The results show that simultaneously, agricultural exports, high-technology exports, Foreign Direct Investment, and regulatory quality have a significant influence on the economies of APEC member countries. Partially, high-technology exports and regulatory quality have a positive and significant impact, while agricultural exports and Foreign Direct Investment have a positive but not significant impact on GDP. APEC countries should focus on productivity by harnessing technology and achieving inclusive economies for societal welfare.

Analysing the interplay between energy transition, resource consumption, deforestation, and environmental factors on agricultural productivity: Insights from APEC countries

The growing focus on regional and international environmental cooperation has helped further discussions about environmental sustainability. This study evaluates agricultural economic productivity and how it is affected by natural resource consumption, energy transition, deforestation, global trade integration and environmental degradation in Asia-Pacific Economic Cooperation (APEC) countries. Our empirical findings from CS-ARDL, AMG and CCEMG help us reveal that environmental degradation, deforestation and natural resource abundance lower agricultural productivity, while energy transition and global trade integration improve agricultural productivity. Additionally, despite being highly integrated within global economic structure, APEC countries have not been able to boost agricultural productivity more than other regional blocks. We propose novel policy recommendations for APEC policymakers to improve environmental sustainability and agricultural productivity.

Oil revenue and production cost disconnect and its impact on the environment: Economic globalization in Asia-Pacific economic cooperation countries

The global economy relies heavily on oil production, but it is not without challenges. During the period of economic globalization, the revenue and costs associated with oil production have become disjointed, which has had a detrimental effect on the environment. As a result, environmental protection has been compromised, environmental regulations have been weakened, natural resources have been exploited, and climate change has been exacerbated. This study examines the impact of revenue minus the production cost of oil, energy use, and shadow economy on environmental degradation in APEC countries from 1991 to 2020, using the economic globalization index as a moderating variable. The result explains that revenue minus the oil production cost and the shadow economy are negatively associated with environmental degradation. Energy use and economic globalization are positively associated with environmental degradation in APEC countries. Revenue minus the production cost of oil and shadow economy improve the environment. Energy use and economic globalization degrade the environment in APEC countries. Policymakers are encouraged to advance technologies and upgrade infrastructure to reduce greenhouse gas emissions; also, promoting energy-efficient practices in other sectors, like transportation and manufacturing, could contribute to a healthier environment.

Environmental impact of energy imports: Natural resources income and natural gas production profitability in the Asia-Pacific Economic Cooperation Countries

Environmental degradation is a pressing global concern, with the energy sector being one of the major contributors to this issue. The environmental impact of energy imports, particularly regarding natural resources income and natural gas production profitability, cannot be ignored. Countries must assess the environmental consequences of their energy choices and take steps to minimize their impact. By transitioning to cleaner and more sustainable energy sources, countries can ensure a better future for the environment and their economies. This study examines the impact of energy imports and natural resources income on environmental degradation in the Asia-Pacific Economic Cooperation (APEC) countries from 1990 to 2020, using revenue minus the production cost of natural gas and electricity production from renewable sources as moderating variables. Long-run estimates are derived using the Generalized Method of Moments and robust least squares. Our findings elucidate that importing energy from countries specializing in renewable energy can help reduce reliance on fossil fuels. This diversification of energy sources decreases the overall carbon footprint and contributes to a cleaner environment. Natural gas production often involves infrastructure construction, such as drilling rigs and pipelines, which can disrupt natural habitats and wildlife corridors. This destruction of ecosystems can have long-term consequences on biodiversity and ecological balance. The environmental impact of energy imports, particularly related to natural resource income and natural gas production profitability, requires BRICS countries to take proactive measures. These nations can address the environmental challenges associated with their energy demands by implementing policies prioritizing sustainable resource management, carbon pricing, stringent regulation, and investment in research and development. By doing so, they can balance economic growth and environmental sustainability, ensuring a greener future for the BRICS countries.

Determinants of Stock Performance for Selected Asia-Pacific Economic Cooperation Countries (APEC)

Asia-Pacific Economic Cooperation (APEC) held its 27th summit in 2020 and emphasized facilitating trade and investment in the Asia-Pacific region. This creates trading opportunities for investors in the stock market, allowing for potential financial growth and economic development. However, it becomes a challenge for investors to participate in the stock market due to APEC consisting of multiple countries with different risks and opportunities. The main objective is to find, analyse and determine the independent variables that can potentially affect the stock performance of all selected APEC countries in a significant manner. The independent variables included in the study are stock volatility, inflation rate, real interest rate and market capitalization. The study uses underpinning theories to support the independent variables, including Dow Theory, Cost-Push Inflation Theory, Liquidity Preference Theory and Free-Float Methodology. A static panel analysis takes place following the Random Walk Model with the adjusted formula to fit the study. The results suggest that all four independent variables have achieved significant probability values for all selected APEC countries. The significant outcomes may be the result of integration and interdependence among APEC economies, which has indeed created opportunities for investors to gain an advantage over the stock market.

Exploring the linkage between financial development and ecological footprint in APEC countries: A novel view under corruption perception and environmental policy stringency

Balancing economic growth and a sustainable environment has been a concern for governments. However, it has been observed that sustainable development is related to economic factors, the institutional environment, and the effectiveness of environmental regulatory policies. This study empirically investigates the relationship between financial development, strict environmental regulations, corruption, foreign direct investment, trade openness, renewable energy consumption, and ecological footprint. We used annual panel data of Asia-Pacific Economic Cooperation countries from 1994 to 2018 to fill the research gap. The present study follows a perspective that produces reliable and robust results using Fully Modified Ordinary Least Squares and panel fisher causality analysis. The long-run flexibility estimates calculated with the Fully Modified Ordinary Least Squares approach explain the inverted U relationship between financial development and ecological footprint. Long-run elasticity estimates suggest that strict environmental policies, renewable energy consumption, financial development and corruption, and the interaction of financial development and strict environmental policies reduce the ecological footprint. In addition, foreign direct investment and trade openness are found to increase the ecological footprint. This confirms the pollution haven hypothesis in Asia-Pacific Economic Cooperation countries. According to the causality test results, bidirectional causality relationships were discovered between ecological footprint and financial development, strict environmental policies, corruption, renewable energy sources, foreign direct investment and trade openness. We suggest that institutional financial framework and financial development for APEC countries will reduce environmental degradation in the long run, and sustainable development can be achieved through the institutional environment and the effectiveness of environmental regulatory policies.

Should Asia Pacific economic cooperation countries put all their eggs in one energy basket? Examining the linkage between energy diversification and sustainable development

Energy diversification is critically important from an economic, political and environmental point of view. In this research, we try to investigate the role of energy diversification for sustainable development in Asia Pacific Economic Cooperation or APEC member countries. We utilize data from different sources which range from 1990 to 2020. Apart from energy diversification, other independent variables such as public sector corruption, ICT, economic globalization and social globalization are utilized according to the theory and empirical literatures which utilize these parameters in order to see how growth or environment of an economy is affected. The study implements second generation econometric methodologies in order to tackle the cross sectional dependence issue among the countries. The result reveals that energy diversification positively and significantly affect sustainable development in APEC nations. ICT and economic globalization were also found to be positively affecting the sustainable development. However, social globalization negatively affected the sustainable development while the effect of public sector corruption was not significant. Bidirectional causality was revealed between sustainable development and energy diversification. The study recommends diversifying energy sources for achieving the sustainable development goals (SDGs) agenda for these economies.

Sustainable energy and environmental sustainability in selected Asia Pacific Economic Cooperation countries

Global environmental threats from human accomplishments are becoming most complex and interlinked, with widespread repercussions for people, ecosystems, and economies. We investigate the impact of low-carbon electricity production and international trade on environmental sustainability in selected Asia Pacific Economic Cooperation (APEC) countries, using economic growth and government expenditure as moderators from 1990 to 2019. Comprehensive empirical analysis and second-generation advanced econometric methodologies are applied to this study. Our results signify that low-carbon electricity production is negatively associated, while economic growth, international trade, and government expenditure are positively related to environmental sustainability. Moreover, low-carbon electricity production improves, while economic growth, international trade, and government expenditure deteriorate the environmental sustainability in selected APEC countries. This empirical evidence suggests that APEC countries should broaden low-carbon energy policies to accelerate renewable energy technology and industry system evolution, encouraging breakthrough technological innovations and industrialization of wind power, solar power, and bio-liquid fuels. Research limitations and directions discussed.

Measuring road safety achievement based on EWM-GRA-SVD: A decision-making support system for APEC countries

Measuring road safety achievement through persistent monitoring of subjects, such that they can learn from one another, has been widely encouraged by various countries to support policymaking. In recent decades, the Asia-Pacific Economic Cooperation (APEC) countries have been working together to improve road safety, considering it an important constituent and reflection of their economic development. However, no uniform road safety measurement framework is currently available across the APEC. To this end, the current study develops a practical and efficient methodology, namely, the entropy weight method (EWM) – grey relational analysis (GRA) – singular value decomposition (SVD) (EWM-GRA-SVD), providing government officials and policymakers with a replicable framework for reporting the road safety achievement of countries. The EWM is employed to obtain the weights of the set of indicators, as the weighting inputs of GRA, to form a composite score for ranking, where the SVD is embedded in the GRA for grouping by means of extracting singular values. Using the proposed model, best-performing and underperforming countries are distinguished, whereby each country could learn from others within their assigned group based on an overview of achievements and progress in road safety over the past decade. The results enable decision-makers and policymakers to develop action plans and consider necessary interventions promptly and effectively.

The relationship between FDI, CO2 emissions, and energy consumption in Asia-Pacific economic cooperation countries.

This paper investigates the relationship between CO2 emissions, energy consumption, economic growth, and foreign direct investment for a sample of Asia-Pacific Economic Cooperation Countries (APEC) countries from 1981:Q1 to 2021:Q1 employing panel data methodology. We identify cross-sectional dependence and hence utilize the cross-sectional augmented Dickey-Fuller panel unit root test for appropriate estimation. The cointegration test developed by Westerlund (2008) reveals a long-run equilibrium between CO2 emissions, energy consumption, economic growth, and foreign direct investment. Long-run parameter estimates based on Common Correlated Effect Mean Group indicate that an increase in FDI inflows has a negative impact on air quality, supporting the pollution haven hypothesis. The cointegration test results also show that the impact of Gross Domestic Product (GDP) on CO2 emissions varies by country in the estimation sample. In contrast to the mixed evidence on the effects of other variables, the increase in energy consumption is positively and significantly affecting CO2 emissions in all APEC countries. Emirmahmutoglu and Kose Econ Model 28:870-876, (2011)'s panel causality test results show a bidirectional relationship between FDI and CO2 emissions in Japan. Furthermore, there is a bidirectional causal relationship between GDP and energy consumption in Australia, China, Japan, and Singapore. Overall, empirical evidence suggests that APEC countries should adhere to strict regulations and invest in environmental-friendly clean technologies to attract foreign direct investment.

Links among energy intensity, non-linear financial development, and environmental sustainability: New evidence from Asia Pacific Economic Cooperation countries

Environmental sustainability has gained much attention in the recent decade. This study examines the links among energy intensity, non-linear financial development, and environmental sustainability in the presence of economic growth of the Asia Pacific Economic Cooperation (APEC) countries from a period of 1990–2016. We apply advanced econometric methodologies for empirical analysis. Empirical results support the presence of inverted U-shaped Environment Kuznets Curve (EKC). Our linear function findings indicate that energy intensity, financial development, and economic growth are positively associated with the ecological footprint. However, these variables are negatively related to APEC countries’ ecological footprint in the non-linear phase. These results support the EKC hypothesis for APEC countries. We found a positive relationship between energy intensity and ecological footprint, indicating that energy intensity is associated with deteriorating environmental sustainability. We confirm a financial development-driven U-shaped link with an ecological footprint at a maximum turning point of −7.9653. There are U-shaped and N-shaped EKC relationships between economic growth and ecological footprint at a maximum and minimum turning point of −8.07029 and 23.5465, respectively. Overall, at the initial stage, financial development and economic growth deteriorate the environment to a point after which it improves. Policymakers are encouraged to advocate technological advancements, address market failure, get the price right by pricing the pollution like carbon pricing, reforming inefficient subsidies, and decouple the links between environmental vicious and economic goods. Study limitations and directions for future research in the area have been discussed as well.

A Framework of the Energy-Efficient Vehicle Initiative and its Implementation in a Developed Country: the case of Malaysia

Energy-Efficient Vehicles (EEV) are a form of green transportation that minimise carbon dioxide emissions and eliminate reliance on fossil fuels. As an oil-producing nation, Malaysia needs to conserve its resources and alternate its dependence on fuel combustion engines and their toxic emissions. In recent years, Malaysia has set EEV production goals and adopted several policies to reduce greenhouse gas emissions while meeting the transportation sector's growing energy demands. This study evaluates the current policies and initiatives for EEV and their relevance and implementation in the present scenario. It is worth ascertaining the critical elements that need to be in place for the government to push for the adoption of EEV. This study first reviewed relevant government policies supporting EEVs. Next, a comparative analysis of EEVs initiatives between Asia-Pacific Economic Cooperation countries was discussed. Simultaneously, expert panels were consulted through interview sessions to identify gaps in the implementation of EEVs. Based on the findings, the relationship framework of EEVs initiatives and an outline of strategies to improve existing practices were formulated. As a result, this study proposed integrating various agencies and market players as an essential factor to determine the success of implementing EEVs. By way of conclusion, a summary of effective policies is put forward as a recommendation to stimulate the current EEV market. This study sets the stage for policymakers to adopt and improve EEV strategies.

Effects of biomass energy consumption on environmental quality: The role of education and technology in Asia-Pacific Economic Cooperation countries

Rising concern regarding traditional non-renewable energy consumption has led policymakers to explore the potential of economical renewable energy sources. In this regard, biomass energy has received considerable attention because previous studies have found mixed results regarding the effect of biomass energy on environmental quality. Together with modern technology, biomass energy may significantly influence environmental quality. This study investigates the impact of biomass energy consumption, education, and technological innovation on environmental quality by controlling for the role of economic growth and financial development in the function of environmental quality. Second-generation econometric methods were used to solve the issues of heterogeneity and cross-sectional dependence in the study variables. The Westerlund and Edgerton (2008) cointegration technique confirmed the existence of a long-run equilibrium among the variables in the presence of structural breaks. The panel quantile regression results indicate that biomass energy use and technological innovation reduce environmental quality. Similarly, economic growth increases carbon emissions in the environment. Education and financial development contribute to reduce carbon emissions.

Dynamic relationship between technological innovations, financial development, renewable energy, and ecological footprint: fresh insights based on the STIRPAT model for Asia Pacific Economic Cooperation countries.

This article seeks to analyze the impact of technological innovations, financial development, renewable energy consumption, economic growth, and population on the ecological footprint in Asia Pacific Economic Cooperation (APEC) countries by utilizing the balanced longitudinal data set during the period from 1990 to 2017. This study creates a new technological innovation index through principle component analysis including three important indicators that represent the technology and employs a consistent environmental framework identified as Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model. The second generation panel estimation technique is employed to calculate robust and reliable outcomes. After confirming the cross-sectional dependency among series, panel unit root tests confirm that all variables are stationary at their first integrated order. Furthermore, Westerlund cointegration test confirms the presence of long-run association among variables. The outcomes explore that financial development and renewable energy utilization significantly accelerate the environmental quality by 0.0927% and 0.4274%, respectively. While, the increase in technological innovation activities, economic growth, and population size has a detrimental effect on environmental quality in the long run by 0.099%, 0.517%, and 0.458%, respectively. Moreover, the results of panel Dumitrescu and Hurlin (D-H) non-causality test discovered the bidirectional causality relationship between financial development, technological innovations, renewable energy consumption, economic growth, and population size with the ecological footprint. These empirical findings provide some vital policy implications for central authority and policymakers to overcome the detrimental impact on environmental quality in the APEC region.

Makroekonomik Performans Göstergelerinin Yolsuzluğa Etkisi

“Kamu gücünün özel çıkarlar için kötüye kullanılması” olarak tanımlanan yolsuzluk ekonomik, politik, hukuki ve sosyo-kültürel belirleyicileri olan bir kavramdır. Ülkeden ülkeye farklılık gösteren yolsuzluğun ölçümü ise pek mümkün olmamakla birlikte yolsuzluk algı ölçümü yapılabilmektedir. Çalışmanın amacı söz konusu belirleyicilerden yalnızca ekonomik belirleyicilerin yolsuzluk ile ilişkisini test etmektir. Bu kapsamda 2001-2017 dönemi için APEC (Asya Pasifik Ekonomik İşbirliği) ülkelerinde makroekonomik performans göstergelerinin yolsuzluğa etkisi panel sıralı nitel tercih yöntemi ile analiz edilmiştir. Makroekonomik performans göstergeleri büyüme, enflasyon, işsizlik, gelir eşitsizliği ve dışa açıklık olarak belirlenmiş, dışa açıklık değişkeni ticari küreselleşme endeksi ile tanımlanmıştır. Yolsuzluk algı endeksi bağımlı değişkendir ve endeksin en yüksek değeri 0, en düşük değeri 10’dur. Bağımlı değişken olarak kullanılan yolsuzluk algılama endeksi sıralı bir değişken olduğu için sıralı nitel tercih modelleri kullanılmıştır. Ekonometrik analizler sonucu elde edilen bulgulara göre kişi başına GSYH ve ticari küreselleşme endeksi arttıkça yolsuzluk endeks değeri de artmakta, diğer bir ifadeyle yolsuzluk azalmaktadır. Enflasyon oranı ve Gini katsayısı (gelir eşitsizliği) arttıkça yolsuzluk endeks değeri azalmakta, yolsuzluk artmaktadır. İşsizlik oranı arttıkça yolsuzluk endeks değeri önce artmakta (yolsuzluk azalmakta), sonra azalmaktadır (yolsuzluk artmakta). Çalışmada makroekonomik performans göstergelerinin yolsuzluğun düşük düzeylerinde daha etkili ve düşük yolsuzluk düzeyini etkileme olasılığının ise daha yüksek olduğu sonucu elde edilmiştir. Dolayısıyla gelir seviyesini artırabilen ve bunun adil dağıtımını sağlayarak işsizliği azaltan, dünya ekonomisi ile entegrasyon derecesini yükselten ve enflasyon oranını düşük tutabilen ülkelerde yolsuzluğun da düşeceği ortaya koyulmuştur.

The pathway toward pollution mitigation: Does institutional quality make a difference?

AbstractInstitutions in a country ensure sustainability and play a significant role in economic development by encouraging best practices in governmental interventions. A strong and transparent institutional framework opposes corruption and improves the management of public finances, which may also yield desired outcomes for the environment and society. However, the role of institutions in environmental issues is still under‐investigated in the literature. This study aims to investigate the relationship between renewable energy consumption, institutional quality, economic performance, and carbon dioxide (CO2) emissions in 18 Asia‐Pacific Economic Cooperation (APEC) countries for the period 1992–2015. To this end, robust panel data estimation techniques are employed. The study confirms that a cointegration relationship exists among study variables. Evidence from the empirical results reveals that institutions have beneficial environmental effects. Likewise, renewable energy reduces carbon emissions to mitigate climate change, but nonrenewable energy harms the environment. Institutional quality helps to form the environmental Kuznets curve hypothesis in APEC countries. Finally, causality analysis refers to the unidirectional causality running from institutional quality to CO2 emissions. Results reveal that stronger institutional arrangements in APEC countries could be the solution for implementations of effective environmental regulation to combat rising environmental challenges without sacrificing higher economic growth.

Enhancing the Ease of Doing Business in APEC Countries: A Comprehensive Review of Literature

Since 2006, the World Bank has been ranking almost 200 countries in terms of their business environment and the “ease of doing business” in these economies. The rationale behind this is the importance of a thriving private sector in promoting high and inclusive growth and development. It is argued that the easier it is to establish and run a business, the more investors will be encouraged to invest, and thus more employment is generated. A good business environment also promotes competition and encourages innovation and expansion (World Bank 2013). The Asia-Pacific Economic Cooperation (APEC) also has its own specialized group monitoring the progress of its members in enhancing the ease of doing business. In its 2015 edition (which looks at data from 2014), the World Bank ranked the Philippines 95th in its Doing Business Report. This is a 13-place improvement from its 2014 rank and a 38-notch jump from 2013. These improvements reflect the efforts made by key government agencies in the past years. This rise in ranking can be seen not only as an enhancement of the country’s economic fundamentals and potential for growth; it also sends out a positive signal to foreign investors, governments, institutions, and media. This paper will provide inputs to the APEC Ease of Doing Business (EoDB) Initiative which establishes the goal of an APEC-wide improvement of 25% by 2015 in the following five key areas of doing business: (1) starting a business; (2) dealing with permits; (3) getting credit; (4) trading across borders; and (5) enforcing contracts, with an interim target of 5% percent improvement by 2011.

Türkiye ile Asya ve Pasifik Ekonomik İşbirliği (APEC) Ülkeleri Arasındaki Dış Ticaretin Çekim Modeli ile İncelenmesi

Member countries of Asia-Pacific Economic Cooperation (APEC) constitute an important part of World foreign trade flows. Because of the share’s size that APEC takes from foreign trade and its potential of increasing the share it has in the upcoming years, it seems that Turkey’s trade with member countries of APEC will gain more importance in the future. The aim of this study is to analyze the factors that influence Turkey’s trade with 21 member countries of APEC between the years of 1997-2016 using panel data analysis method and basing upon gravity model and to explain and interpret the changes occur in the foreign trade of these countries within this period. Thus the factors influencing the international trade between APEC countries and Turkey have been determined and evaluated. In this study, total foreign trade volume of Turkey and member countries of APEC is used as dependent variable; the ratio of foreign trade volume to GDP, export, import, gross domestic product (GDP) difference, GDP per capita difference, population, Linder effect, relative factor endowment, distance and acreage are used as independent variable; G20 membership, G8 membership, OECD (Organization for Economic Co-operation and Development) membership, free trade agreements, crisis and visa variables are used as dummy variable. In the consequence of analyses made with 7 model set up in this study, it has been concluded that variables of foreign trade volume / GDP, export, import, Linder effect, relative factor endowment and G20 membership influence the foreign trade volume between Turkey – APEC countries positively and variables of GDP difference, OECD membership and visa variables influence foreign trade volume negatively. It has been determined that there is no significant relationship between variables of GDP per capita difference, distance, population, acreage, G8membership, crisis, free trade agreements and variable of foreign trade volume between Turkey-APEC countries.

Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries

This study determines the dynamic linkages between globalization, financial development and carbon emissions in Asia Pacific Economic Cooperation (APEC) countries in the presence of energy intensity and economic growth under the framework of Environment Kuznets Curve (EKC). This study employs the panel data from 1990 to 2016, Westerlund cointegration technique to find long-run cointegration, and Continuously Updated Bias-Corrected (CUP-BC) and Continuously Updated Fully Modified (CUP-FM) methods to check the long-run elasticities between the variables. Empirical results indicate that globalization and financial development significantly reduce carbon emissions, but economic growth and energy intensity increase them. These results support the EKC hypothesis for APEC countries. The Dumitrescu and Hurlin causality analysis shows that globalization Granger causes CO2 emissions. Globalization also causes financial development and energy intensity. A feedback effect exists between financial development and CO2 emissions. Furthermore, financial development causes economic growth but similar is not true from opposite-side in Granger sense. Finally, this study presents important policy implications with respect to APEC countries.