Modelling the globalization-CO₂ emission nexus in Australia: evidence from quantile-on-quantile approach

Sustainable development policies for achieving net-zero emissions require understanding the factors that influence carbon emissions. Capitalizing on the limitations of the existing literature, this study applies the quantile-on-quantile approach to investigate economic globalization's impact on carbon emissions in Australia for 1970-2018. The results from the quantile-on-quantile revealed a positive feedback linkage between globalization and carbon emissions at all quantiles. The results further indicated that while there is a positive feedback linkage between economic growth and carbon emissions at most quantiles, a positive feedback interconnection exists between carbon emissions and coal consumption at all quantiles. As a robustness check, we employed the quantile regression test, and the results from quantile regression are consistent with the findings from the quantile-on-quantile approach. The consistency of the results suggests that these study findings are reliable and suitable for informing policies that seek to address carbon emissions in Australia. The policy implications for Australia are discussed.