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Climate change is one of the greatest challenges for the earth that is mostly driven by human actions. The rapid increase of world population forces the businesses to reach the economies of scale. Digital and technological transformation of the world, thanks to “Industry 4.0,” provides new opportunities for production as well as international trade. Today, the green production process of an imported product could produce lower emissions than producing domestically. However, the greenest countries in the world are developed ones such as Denmark, Switzerland, and Austria. Furthermore, nearly half of the goods' export belongs to developing economies. This chapter focuses on the carbon dioxide (CO₂) emission of 18 countries that produce approximately 75% of the world's CO₂ emission and its determinants. The main target of the study is to investigate the impact of export on carbon emission. The convergence estimation and responsiveness scores (RSs) of countries' CO₂ emission levels are performed to find carbon emission convergent groups and the impact of emission determinants. Besides, the study divides the export of countries into broad economic categories (BEC) and evaluates the impact of capital goods, intermediate goods, and consumption goods groups over the emission. The findings demonstrate that intermediate goods export leads to 7.4% deviation of CO₂ emission whereas the effects of capital and consumption goods are neutral. To the knowledge of the authors, this is the first research discussing the BEC classification impact over the carbon emission of that 18 countries. The results help to take necessary and effective measures of supranational organizations to have a sustainable trade policy especially for the post-Covid-19 period of the world.

Introduction – The rapid flow of information between the markets eliminates the possibility of diversifying the portfolio by bringing the markets closer, and may cause the volatility in a market to spread to another market. In this context, revealing the relationships between conventional and participation markets or financial assets is important in terms of portfolio diversification and risk management.

Purpose – The major aim of this work is to analyse the existence of volatility spillover between conventional stock index and participation index based on the indexes in Turkish Capital Markets. BIST-30 and Katılım-30 indexes are used as the representatives of conventional stock index and participation index, respectively.

Methodology – Firstly, the univariate HYGARCH (1,d,1) parameters are calculated, and secondly, the dynamic equicorrelation (DECO) methodology is applied. DECO model is proposed to simplify structural assumptions by introducing a structure in which all twosomes of returns take the same correlation for a given time period. In this way, DECO model enables to have an optimal portfolio selection in comparison to an unrestricted time varying-dynamic correlation approaches and gives more advanced forecasting ability for the duration of the financial crisis periods compared to the various portfolios.

Findings – There is a strong correlation between BIST-30 and Katılım-30. They are affected by the same shocks. We expect to see different investor behaviours for Katılım-30 and BIST-30. However, they seem to have almost the same investor profile. In addition, there is a causality in both ways and volatility spillover between them.