Does trade always harm the environment? A panel quantile regression study of ASEAN economies

This study investigates how trade openness influences environmental quality—measured explicitly by carbon dioxide (CO₂) emissions—in nine ASEAN countries over the period 1990–2022. Using a panel quantile regression framework, the analysis uncovers heterogeneous effects across the CO₂-emission distribution, allowing for a more nuanced understanding of how trade and structural factors shape environmental outcomes in economies with differing pollution intensities. The results show that trade openness significantly increases CO₂ emissions at medium and high quantiles, indicating that environmental pressures intensify as countries become more deeply integrated into global trade, particularly in already high-emission contexts. Population size, however, does not exhibit a significant effect across quantiles, suggesting that demographic expansion alone is not a primary driver of emissions within the region. Additional control variables including economic growth, energy consumption, and industrial structure, offer further insight into the channels through which trade influences environmental performance: countries with higher reliance on fossil-fuel energy and more carbon-intensive production structures experience stronger pollution effects from trade. These findings underscore the need for ASEAN member states to integrate environmental safeguards into trade policy, promote cleaner production systems, and adopt differentiated mitigation strategies that reflect their position in the emissions distribution. By highlighting the conditional nature of trade–environment linkages, this study contributes to the broader discourse on sustainable development and supports evidence-based policymaking in emerging regional economies.

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Publication Details

Journal
Economics and Environment
Published
2025-12-31
DOI
https://doi.org/10.34659/eis.2025.95.4.1179
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
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article

Does trade always harm the environment? A panel quantile regression study of ASEAN economies

Abdul Hamid Paddu, Indraswati Tri Abdi Reviane, Aditya Idris, Sarnita P et al.
Economics and Environment
Energy, Environment, Economic Growth
article

Does trade always harm the environment? A panel quantile regression study of ASEAN economies

Abdul Hamid Paddu, Indraswati Tri Abdi Reviane, Aditya Idris, Sarnita P, Nispa Santi
article en

Abstract

This study investigates how trade openness influences environmental quality—measured explicitly by carbon dioxide (CO₂) emissions—in nine ASEAN countries over the period 1990–2022. Using a panel quantile regression framework, the analysis uncovers heterogeneous effects across the CO₂-emission distribution, allowing for a more nuanced understanding of how trade and structural factors shape environmental outcomes in economies with differing pollution intensities. The results show that trade openness significantly increases CO₂ emissions at medium and high quantiles, indicating that environmental pressures intensify as countries become more deeply integrated into global trade, particularly in already high-emission contexts. Population size, however, does not exhibit a significant effect across quantiles, suggesting that demographic expansion alone is not a primary driver of emissions within the region. Additional control variables including economic growth, energy consumption, and industrial structure, offer further insight into the channels through which trade influences environmental performance: countries with higher reliance on fossil-fuel energy and more carbon-intensive production structures experience stronger pollution effects from trade. These findings underscore the need for ASEAN member states to integrate environmental safeguards into trade policy, promote cleaner production systems, and adopt differentiated mitigation strategies that reflect their position in the emissions distribution. By highlighting the conditional nature of trade–environment linkages, this study contributes to the broader discourse on sustainable development and supports evidence-based policymaking in emerging regional economies.

Economics and EnvironmentVol. 95(4)
Openalex Percentile: Top 15%
Energy, Environment, Economic Growth
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