ABSTRACT

The trade–off between economic growth and environmental degradation constitutes a significant area of research. Within this context, international trade, related to the existing structure, frequently arises in related discussions. While proponents of free trade argue that it enhances global welfare by promoting specialization and division of labor, environmentalists express concerns regarding the potential overexploitation of natural resources. In this framework, the carbon intensity of gross domestic product (CIGDP) has recently been considered as a important variable in empirical analyses. Although the relationship between growth, trade, and carbon emissions has been extensively studied, analyzing carbon emissions per unit of economic growth introduces a productivity–oriented perspective. Motivated by this rationale, the present study investigates the causal relationship between CIGDP, green trade openness, and trade globalization. Using a panel dataset covering 26 EU countries and Türkiye from 1995 to 2020, the analysis identifies bidirectional causality among all variables. Thus, the statistical evidence confirms the relevance of including CIGDP in future regression models, offering a novel perspective for academic research in the field.

JEL Classification: F18, O44, Q56