2018 Volume 2018 Issue 1 Pages 1-9
This study examines the impact of manufacturing import and export on overall CO2 emissions, using the extended environmental Kuznets curve model. By conducting an empirical analysis of twenty-two developed countries for the years 1980-2011, this study reveals that manufacturing imports ratio to domestic production has a significantly negative impact on overall domestic CO2 emission, while the impact of manufacturing exports ratio to domestic production on overall domestic CO2 emissions has not been recognized. Furthermore, breaking down the import of manufacturing goods into imports in each production stage (primary goods, intermediate goods, and final goods), this study shows that the import of primary goods contributed to decrease in overall domestic CO2 emissions, while the import of final goods has a significantly positive impact on overall domestic CO2 emission. The impact of the import of intermediate goods depends on specification models. This implies that the pollution haven effect for a global pollutant (CO2), or carbon leakage is recognized.
