Does Service Trade Globalization Promote Trade and Low-Carbon Globalization? Evidence from 30 Countries

Abstract

The purpose of this study is to investigate the effect of service trade globalization on low-carbon globalization. Two newly developed non-radial directional distance functions of UEI (Unified Efficiency Index) and EEPI (Energy-Environmental Performance Index) were adopted to evaluate energy and CO2 emission performances of 30 countries during the period 1980–2013. A multiple regression analysis was conducted based on the Tobit model. Results showed that: (1) Service trade openness has a positive effect on energy and CO2 emission efficiency, and the effect has been intensified with time. (2) Emerging service sectors promoted the improvement of energy and CO2 emission efficiency, while the traditional sectors hindered the efficiency improvement. (3) There existed a “catch-up” effect between less developed countries and developed countries on energy and CO2 emission efficiency. Policy implications are thus drawn on how to promote the improvement of energy and carbon emission efficiency in the context of low-carbon globalization.