Role of Trade Openness in CO 2 Emissions Convergence: Evidence from BRICS+ Countries

Sethi, Keshav ORCID: https://orcid.org/0009-0001-8395-6790 and Jha, Debajit ORCID: https://orcid.org/0000-0001-7797-9067 (2026) Role of Trade Openness in CO 2 Emissions Convergence: Evidence from BRICS+ Countries. Foreign Trade Review, 12 (2). pp. 179-199. ISSN 00157325

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Abstract

The contemporary world’s growing dependence on fossils has resulted in a sharp rise in carbon dioxide (CO 2 ) emissions, intensifying global climate concerns. In this context, understanding whether countries are converging in their per capita CO 2 emissions (or diverging) is crucial for a policy perspective. A key factor that may influence this process is trade openness. While theory suggests various channels through which trade can either reduce or increase emissions, the overall impact on emissions convergence remains inconclusive due to the complex and often contradictory nature of these mechanisms. This study explores how trade openness affects CO 2 emissions convergence, focusing on the BRICS+ countries, a group of emerging countries with diverse economic and environmental profiles. Using a β -convergence framework and Chudik and Pesaran’s (2015, Journal of Econometrics , 188 , 393–420) dynamic common correlated effect mean group model, we investigate both production-based and consumption-based CO 2 per capita emissions. Our results show a clear distinction: trade openness does not significantly impact convergence in production-based CO 2 per capita emissions, but it does have a negative and significant impact on consumption-based CO 2 per capita emissions growth, possibly due to cleaner imports. This suggests that trade affects the emissions tied to what countries consume, rather than what they produce. This highlights the importance of designing trade policies that encourage the flow of low-carbon-intensive goods and services.

Item Type: Article
Uncontrolled Keywords: BRICS+ | Climate change | CO2emissions | Convergence | Cross-section dependence | SDG 10 | SDG 13 | Trade
Subjects: Physical, Life and Health Sciences > Health Policy
Physical, Life and Health Sciences > Medicine
Physical, Life and Health Sciences > Public Health, Environmental and Occupational Health
Vol/Issue no. published date: April 2025
Depositing User: Mr. Syed Anas
Date Deposited: 08 Jun 2026 09:40
Last Modified: 08 Jun 2026 09:40
Official URL: https://doi.org/10.1177/00157325261444813
URI: https://pure.jgu.edu.in/id/eprint/11543

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