EJCE Year: 2010, December. Volume: 7 - Issue: 2
Globalization and Emissions in Europe
by Helen Tammela Naughton
Start page: 503 - End page: 519
Keywords: globalization; environment; spatial econometrics
Jel code: F18; Q53; Q58
DOI:
Abstract:
This paper examines the impact of five globalization variables on sulfur dioxide and nitrogen oxides emissions in Europe from 1980-2000 in the framework of one empirical model. The spatial autoregressive regression model is estimated using 2SLS. The five variables of interest are trade, foreign direct investment, neighboring countries wealth, cross-border pollution and participation in international environmental treaties. I then omit each of the globalization effects one at a time and find that omitted variable bias would be significant for four of the globalization variables, the exception being neighbors' wealth.
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