Globalization-driven CO2 emissions in Singapore: an application of ARDL approach

This study explores the linkage between globalization and CO 2 emissions in Singapore by using long-term data obtained during 1970–2014. The Zivot-Andrew unit root test corroborates that gross domestic production, economic globalization, political globalization, social globalization, square of economic growth, and carbon dioxide emissions have a unit root at I(0) and stationary at I(1). In this study, the application of auto-regressive distributed lag model finds a significant linkage between the estimated variables. Short- and long-run coefficients confirm that social globalization and economic globalization will be responsible for reduction in carbon dioxide emissions in the future for Singapore. Moreover, this research confirms the presence of environmental Kuznets curve in Singapore. It is proved that a 1% increase in political globalization will increase 2.06% emissions in the long term. The stability of the model is confirmed by diagnostic tests. In addition, policy implications to reduce air pollution are presented in this study.