ABSTRACT
This research considers the relationships between carbon dioxide emissions, economic growth, international trade, and energy consumption in Portugal from 1970–2018 using time series (cointegration regressions, autoregressive distributed lag (ADRL), and Granger causality). This empirical study emphasizes that the variables used in this research are integrated into the first differences when the unit roots test is applied. Furthermore, the econometric results using cointegration results and the ARDL model demonstrate that international trade induces energy consumption, supported in neoclassical international trade theories by the Heckscher-Ohlin model and the pollution haven hypothesis (PHH) theory. Regarding carbon dioxide emissions and growth, the results show a positive impact on energy consumption, suggesting the energy dependence of the Portuguese economy vis-à-vis the outside world. Furthermore, the Granger causality results demonstrate that the variables energy consumption and economic growth, international trade, and energy consumption have bidirectionality. The same was observed for the link between economic growth and international trade.
