How globalisation and environmental policy stringency affect the environmental terms of trade? The case of the V4 countries
by Athanasios Kampas; Katarzyna Czech; Stelios Rozakis
International Journal of Green Economics (IJGE), Vol. 15, No. 3, 2021

Abstract: This paper examines the links between globalisation and environmental policy stringency with the environmental terms of trade. The existence of dynamic links among the variables was explored using cross-correlations and Granger Causality tests. According to the results, the de jure and the de facto globalisation measures have different environmental impacts. Also, despite the fact that all V4 countries have introduced strict environmental policies, especially since 2000, the relative strength of these policies lag behind the maximum OECD stringency. As a result, the pollution heaven hypothesis cannot be excluded. The policy implications of the results are briefly discussed.

Online publication date: Tue, 15-Feb-2022

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