The Impact of Transportation Technologies, Technological Exports, Trade Freedom and Trade Globalisation on Transport-Based CO2 Emissions in the Top 10 Emitter Countries

Abstract

High and medium technology exports play a crucial role in supporting economic growth, fostering international competition and potentially reducing carbon dioxide emissions through the adoption of advanced technologies. However, the environmental effects of such exports, particularly in the transportation sector, remain underexplored. This study addresses this gap by examining how transportation technologies, high and medium technology exports, trade freedom, and trade globalisation affect CO₂ emissions from transportation. The analysis covers the ten countries with the highest transportation-related emissions over the period 1995–2020, employing augmented mean group (AMG) and common correlated effects (CCE) estimators. The results reveal heterogeneous effects across countries. Transportation technologies are found to increase emissions in Japan but reduce them in South Korea, the United States and Mexico. High and medium technology exports raise transportation emissions in China, France, Germany, the USA and the overall panel. Trade globalisation increases emissions in France, whereas it reduces them in Germany. These findings suggest that advancing transportation technologies, aligning trade openness with environmental goals and shifting exports toward higher technology products can support the reduction of transportation-related carbon emissions. Such measures are vital for progress toward the Sustainable Development Goals.