Impact of economic growth, energy consumption, and trade openness on carbon emissions: evidence from the top 20 emitting nations

Abstract

The study focuses on the top 20 carbon emission-increasing nations across continents from 2000 to 2021 and the effects of gross domestic product, energy consumption, and trade openness on carbon emissions. The study uses a panel dataset and multiple linear regression analysis to pinpoint the significant factors influencing each nation’s carbon emissions. The findings indicate that China, Kazakhstan, Saudi Arabia, and South Korea in Asia; Algeria, Egypt, Morocco, and the Seychelles in Africa; Antigua and Barbuda, Bolivia, Chile, and Panama in America; Albania, Belarus, Lithuania, and Russia in Europe; and Fiji, Samoa, Tonga, and Vanuatu in Oceania have a highly significant impact on carbon emissions in their respective regions. Energy consumption significantly increases carbon emissions in all countries except Panama and Kazakhstan, where it only significantly impacts GDPrelated carbon emissions. These insights lay the groundwork for policymakers to prioritise sustainable development, reduce carbon emissions in their decision-making processes, and establish comprehensive strategies that reconcile ecological concerns with socioeconomic goals by understanding the intricate dynamics between gross domestic product, energy use, trade openness, and carbon emissions.