Testing the Role of Trade on Carbon Dioxide Emissions in Portugal

This article considers the relationship between trade intensity, energy consumption, income per capita, and carbon dioxide emissions from 1970–2016 for Portuguese economy. Considering arguments of monopolistic competition, tests hypotheses consumption on climate change. We use autoregressive distributed lag-ARDL model, quantile regression, cointegration models such as fully modified ordinary least squares (FMOLS), canonical dynamic (DOLS) an econometric strategy. The results have support with literature review. variables used in this research are integrated first differences, indicated by unit root test. empirical study proves that intensity contributes to environmental improvements. However, presents a positive impact CO2 emissions. also demonstrated sustainable system exists long run.