Does economic complexity matter for environmental degradation? An empirical analysis for different stages of development

Doğan, Buhari; Saboori, Behnaz; Can, Muhlis

doi:10.1007/s11356-019-06333-1

Cited by 202 publications

(124 citation statements)

References 80 publications

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“…It has been known that carbon emissions originate from different parameters such as energy usage, urbanization processing, exports, productive structure, and economic and technical factors (Doğan et al, 2019; Farhani & Rejeb, 2012; Tarancon & Del Rio, 2007). In the empirical studies, the liaison between economic, technical effect, and CO 2 emissions have been examined widely, unlike social and cultural settings (Neagu & Teodoru, 2019; Tsurumi & Managi, 2010; Yin, Zheng, & Chen, 2015).…”

Section: Background Literaturementioning

confidence: 99%

“…Since the industrial revolution, technical innovations have transformed economic systems toward models based on sophisticated and complex industries and services (Kim, 2018). Moreover, technological innovation is being placed as the core of the transition to a lower‐carbon economy (Alvarez‐Herranz et al, 2017; Balsalobre‐Lorente, Shahbaz, Jabbour, & Driha, 2019; Doğan et al, 2019; Neagu & Teodoru, 2019).…”

Section: Background Literaturementioning

confidence: 99%

“…Moreover, they also found that a high economic complexity suppresses long‐term CO 2 emissions. Dogan et al (2019) also tested the liaison between economic complexity and carbon emissions, highlighting the suppressing capacity of economic complexity on environmental degradation. On the contrary, Neagu and Teodoru (2019) determined that the increase in economic complexity implies excessive environmental degradation.…”

Section: Background Literaturementioning

confidence: 99%

“…According to this narrative, this study mainly constructs the theoretical framework and two model specifications to check the role of economic complexity and energy sources in carbon emissions. Following the recent studies Can and Gozgor (2017) and Dogan et al (2019), the following two models are constructed for econometric analysis.…”

Section: Data Modeling and Estimation Strategymentioning

confidence: 99%

“…Indeed, more sophisticated, and less ubiquitous products require profoundly different knowledge and skills in the production phase and thus will be exported by few countries (Ertan Özgüzer & Oğuş‐Binatlı, 2015). However, if the level of knowledge and skill of the country has a broad scale, then it will be easier to provide knowledge and skills when necessary (Doğan, Saboori, & Can, 2019). For producing high‐added value, more sophisticated and productive knowledge‐skills are requested.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Doğan

Driha

Balsalobre‐Lorente

et al. 2020

Sustainable Development

Self Cite

339

117

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Under the growing threats of climate change, innovation and pollution reduction have become driving forces for cleaner economic growth and the environment. This study endeavors to analyze the effect of economic complexity—understood as structural transformation toward more sophisticated and knowledge‐based production, economic progress, renewable energy consumption, and population growth over carbon emissions. Our study employs panel data for a sample of 28 OECD countries covering the period of 1990–2014. The main contribution to the energy economics literature is given by bringing together the concept of environmental degradation and economic complexity controlling via renewable energy consumption and economic and population growth. Based on the extensive empirical analysis (augmented mean group estimator, panel cointegration, and panel regression techniques), we conclude that economic complexity and renewable energy might help in mitigating the environmental degradation problems in OECD countries.

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Section: Background Literaturementioning

confidence: 99%

Section: Background Literaturementioning

confidence: 99%

Section: Background Literaturementioning

confidence: 99%

Section: Data Modeling and Estimation Strategymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Doğan

Driha

Balsalobre‐Lorente

et al. 2020

Sustainable Development

Self Cite

339

117

View full text Add to dashboard Cite

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Environmental degradation, energy consumption and sustainable development: Accounting for the role of economic complexities with evidence from World Bank income clusters

2021

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The anthropogenic consequences of renewable and non-renewable energy consumption, economic growth, and air transport have been assessed enormously in the literature. However, given the complexities in many economies of the world today, it is important to reassess the ecological concerns of these factors in light of the Environmental Kuznets Curve framework. Therefore, this current study investigates the global assessment using data from World Bank Development database from 1995 to 2016. Evidence from the method employed, sys-GMM, revealed that the economic complexities index increases the carbon emission in low-income groups while it significantly decreases the carbon emission for upper-middle and highincome groups. For the combined group, the EKC hypothesis holds, and ECI significantly hampers carbon emissions. For the other variables, it is worthy of note that (1) economic growth contributes to the high carbon contents across the income group especially for low-income, upper-middle-income and high-income group;(2) the effects of air transport on carbon emission is positive for lower-middle-income and high-income group and negative for the upper-middle-income group; (3) the use of coal rents and energy use leads to high release of carbon contents across all the income groups; and (4) a significant increase in the utilization of energy leads to increase in carbon contents except for lower-income group, it leads to a decrease.From this empirical assessment, vital energy policy directions are suggested.

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Economic complexity and environmental degradation: Evidence from OECD countries

Aluko

Acheampong

2022

Bus Strat Env

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We augment the existing knowledge on the role of economic complexity in the environment and sustainable development debate by examining the effect of economic complexity on environmental degradation (measured by ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions) contingent on income, using data from 35 OECD countries between 1998 and 2017. With the fixed effects model estimator, we find that income facilitates economic complexity to mitigate ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions. Also, we fit a partial linear functional-coefficient model to find that income influences economic complexity to exert a nonlinear effect on ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions. We find that economic complexity leads to an increase in ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions at lower income levels but gradually dampens them as income rises. Finally, by applying the Method of Moments Quantile regression to control for distributional heterogeneity, we also find that the mitigating effect of economic complexity on ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions is transmitted through income across quantiles. The policy implications are discussed.

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Does economic complexity matter for environmental degradation? An empirical analysis for different stages of development

Cited by 202 publications

References 80 publications

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries

Environmental degradation, energy consumption and sustainable development: Accounting for the role of economic complexities with evidence from World Bank income clusters

Economic complexity and environmental degradation: Evidence from OECD countries

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