Recent scenario and nexus of globalization to CO₂ emissions: Evidence from wavelet and Quantile on Quantile...

The ubiquitous increase in globalization and high carbon emissions, aiming to achieve non-zero emissions in the future, is a feasible challenge for a sustainable environment. Our study aims to investigate the impact of economic globalization on carbon emissions of the developed country covering the period of 1970-2019. The Wavelet Coherence (WC) and Quantile on Quantile Regression (QQR) approach have been used to analyse co-movements and feedback linkages of CO₂ emissions with globalization, economic growth, and consumption of coal at different quantiles. The results obtained from WC show that there exist significant positive co-movements in the in-phase and leading globalization, economic growth, coal consumption with CO₂ emissions. Further, the results of QQR indicate the existence of a positive and significant linkage between coal consumption and CO₂ emissions for the majority of quantiles, the positive. Still, there is an insignificant association between CO₂ with globalization and economic growth at most quantiles. Lastly, the quantile regression (QR) comparison with QQR suggests that our model is a good fit as the intercept estimates are similar and the slope coefficients follow a similar trend. To conclude, CO₂ emissions have positive associations and co-movements with globalization, economic growth, and coal consumption, but their statistical significance varies and directly affects the Country.