Title: How globalisation and environmental policy stringency affect the environmental terms of trade? The case of the V4 countries

Authors: Athanasios Kampas; Katarzyna Czech; Stelios Rozakis

Addresses: Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, 11855 Athens, Greece; Department of Bioeconomy and Systems Analysis, Institute of Soil Science and Plant Cultivation - State Research Institute, 8 Czartoryskich St, 24-100 Puławy, Poland ' Department of Econometrics and Statistics, Institute of Economics and Finance, Warsaw University of Life Sciences, Nowoursynowska 166, 02-787 Warsaw, Poland ' Lab of Bioeconomy and Biosystems Economics, School of Chemical and Environmental Engineering, Technical University of Crete, 73100 Chania, Greece

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.

Keywords: pollution haven hypothesis; globalisation; ecological footprint; environmental terms of trade.

DOI: 10.1504/IJGE.2021.120872

International Journal of Green Economics, 2021 Vol.15 No.3, pp.233 - 252

Received: 20 Apr 2021
Accepted: 05 Dec 2021
Published online: 15 Feb 2022 *

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