Trade Openness, Energy Usage and Environmental Quality

In an increasingly globalized world, openness to trade is an inevitable trend. The impacts of trade on energy usage could be both positive and negative. First, trade openness enables technological spillover effects so that developing economies could adopt advanced technologies from developed economies. As a result, energy intensity is reduced while more output is produced. This is usually referred to as the technique effect. It is also noteworthy that developing countries heavily rely on fossil fuels for their energy consumption. In this regard, lower energy intensity implies a cleaner environment for these countries. However, the composite effects from trade may lead to higher energy demand if the economy starts shifting from agriculture to industry. Similarly, trade openness requires adequate energy supply for higher economic activities and thus, energy consumption is likely to increase. This implies that energy intensity is higher and hence, the environment could be more polluted if fossil fuels are a major part of the energy mix.

Despite its importance in both academic and policy perspectives, the relationships between trade openness, energy usage (especially energy intensity, energy efficiency, and renewable energy transitions), and environmental performance ( and its various indicators) are still understudied. The objective of this current article collection is to cover promising, recent, and novel research trends in this field. We are particularly interested in empirical studies that cover global or regional perspectives. However, rigorous local/country case studies that could generate significant implications for others are also welcome.

Areas to be covered in this Research Topic may include, but are not limited to:
• The effect of trade openness on the pattern of energy consumption across the developed and developing world
• The impact of trade openness on promoting renewable energy transitions
• The effect of trade openness on the energy products traded
• The impact of trade openness on different indicators of environmental performance
• The influence of trade openness on energy efficiency and/or energy security through the technological spillover effect
• The role of preferential trade agreements in mitigating environmental degradation
• Case studies and/or policy analyses for promoting trade without harming the environment