Unraveling the complex relationship between trade openness and carbon emissions in Asia

New evidence from a threshold approach

2025-09-04

(Press-News.org) In the ongoing debate about the impact of trade openness on environmental sustainability, a new study titled "Trade Openness and Carbon Emissions Using Threshold Approach: Evidence from Selected Asian Countries" offers fresh insights. This research explores the nuanced relationship between trade openness and carbon emissions, providing valuable evidence from a selection of Asian countries. By employing a threshold approach, the study aims to uncover the conditions under which trade openness can either exacerbate or mitigate carbon emissions.

The impact of trade openness on carbon emissions has long been a subject of debate among economists and environmental scientists. While some argue that increased trade can lead to higher emissions through industrial expansion, others suggest that trade openness can drive technological innovation and efficiency, potentially reducing emissions. This study seeks to provide a more nuanced understanding by examining the threshold effects that determine the direction of this relationship.

The study employs a threshold approach to analyze the relationship between trade openness and carbon emissions. This method allows the researchers to identify specific thresholds at which the impact of trade openness on emissions changes. By examining data from selected Asian countries, the study provides a detailed analysis of how trade openness interacts with other factors, such as economic growth, energy consumption, and technological progress, to influence carbon emissions.

Over the past decade, research on the environmental impact of trade has grown significantly. This study stands out by focusing on the threshold effects and providing empirical evidence from Asian countries. The research involves contributions from leading economists and environmental scientists, highlighting the importance of regional analysis in understanding global environmental challenges.

The study reveals several key findings:

Threshold Effects: The impact of trade openness on carbon emissions is not uniform and depends on specific thresholds. Below these thresholds, trade openness can lead to increased emissions, while above them, it can contribute to emission reductions. Economic Growth and Energy Consumption: The study finds that economic growth and energy consumption play crucial roles in determining the relationship between trade openness and carbon emissions. Technological progress and energy efficiency improvements are essential for mitigating the negative impacts of trade openness. Policy Implications: The findings suggest that policymakers should focus on promoting technological innovation and energy efficiency to ensure that trade openness leads to sustainable development.

By understanding the threshold effects and the conditions under which trade openness can lead to sustainable outcomes, countries can design more effective policies to balance economic growth with environmental protection.

As countries in Asia and around the world strive to achieve sustainable development, understanding the complex relationship between trade openness and carbon emissions is crucial. This study offers valuable evidence and a framework for policymakers to develop strategies that promote economic growth while minimizing environmental impact. By leveraging the insights from this research, Asian countries can lead the way in achieving a more sustainable future.

Stay tuned for more updates on this groundbreaking research, which highlights the importance of a nuanced approach to understanding the environmental impacts of trade.

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Citation: Bakri, M.A., Chia, YE. & Chia, R.CJ. Trade openness and carbon emissions using threshold approach: evidence from selected Asian countries. Carbon Res. 4, 47 (2025). https://doi.org/10.1007/s44246-025-00211-x Title: Trade openness and carbon emissions using threshold approach: evidence from selected Asian countries Keywords: Trade openness; Carbon emissions; Threshold; Asian; EKC theory

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Media Contact:
Wushuang Li
liwushuang@syau.edu.cn

About Carbon Research

The journal Carbon Research is an international multidisciplinary platform for communicating advances in fundamental and applied research on natural and engineered carbonaceous materials that are associated with ecological and environmental functions, energy generation, and global change. It is a fully Open Access (OA) journal and the Article Publishing Charges (APC) are waived until Dec 31, 2025. It is dedicated to serving as an innovative, efficient and professional platform for researchers in the field of carbon functions around the world to deliver findings from this rapidly expanding field of science. The journal is currently indexed by Scopus and Ei Compendex, and as of June 2025, the dynamic CiteScore value is 15.4.

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Unraveling the complex relationship between trade openness and carbon emissions in Asia

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