GLOBALIZATION AND CLIMATE CHANGE: NEW EMPIRICAL PANEL DATA EVIDENCE

Whether globalization is good or bad for the environment has been studied intensively in recent years. However, few studies have explicitly provided a general picture of globalization around the world or considered the rich dimensions of globalization outside of economic globalization. By applying the new KOF globalization index in a panel data sample of 166 countries over the 1990-2009 period, our results suggest that, on average, overall carbon emissions rise with higher levels of economic, social and political globalization, although the effect varies by OECD and non-OECD country group. After decomposing the main contributors of carbon emissions, our further data from the manufacturing and construction sector yield evidence consistent with a pollution haven effect in terms of climate change.