AUTHOR=Awosusi Abraham Ayobamiji , Xulu Nkosinathi G. , Ahmadi Mohsen , Rjoub Husam , Altuntaş Mehmet , Uhunamure Solomon Eghosa , Akadiri Seyi Saint , Kirikkaleli Dervis 

TITLE=The Sustainable Environment in Uruguay: The Roles of Financial Development, Natural Resources, and Trade Globalization

JOURNAL=Frontiers in Environmental Science

VOLUME=Volume 10 - 2022

YEAR=2022

URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.875577

DOI=10.3389/fenvs.2022.875577

ISSN=2296-665X

ABSTRACT=As the world continues to be a globalized society, there have been variations in environmental quality, but
studies including trade globalization into the environmental policy framework remain limited. Therefore,
employing the time series dataset of Uruguay over the period between 1980 and 2018, this current study
investigates the effect of trade globalization, natural resources rents, economic growth, and financial
development on carbon emissions. By employing the bounds testing procedures in combination with the
critical approximation p-values of Kripfganz and Schneider (2018), ARDL estimators, and spectral
causality test to achieve the goal of this research. The outcomes of the ARDL bounds test confirm a longrun connection between carbon emissions and its determinants. Moreover, from the outcome of the ARDL approach, we observed that trade globalization, economic growth, natural resources contribute to carbon emissions in Uruguay. Furthermore, we uncover that financial development does not impact environmental deterioration in Uruguay. The outcome of the spectral causality test detected that trade globalization, economic growth, and natural resources forecast carbon emissions with the exclusion of financial development. Based on the outcome, this study suggests that policies should be tailored towards international trade must be reassessed, and the restrictions placed on the exportation of polluting-intensive commodities must be reinforced