Economic complexities and environmental degradation: evidence from OECD countries

Majeed, Muhammad Tariq; Mazhar, Maria; Samreen, Isma; Tauqir, Aisha

doi:10.1007/s10668-021-01687-4

Cited by 28 publications

(13 citation statements)

References 51 publications

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“…This hypothesis proposes that developing countries with relatively flexible regulations can provide a comparative advantage for developed countries to invest in pollution-intensive commodity production. Thus, FDI through direct pollution may worsen the environmental quality of developing countries (Majeed et al, 2022). On the contrary, few researchers support the "pollution halo hypothesis", arguing that FDI can improve county environmental quality through substitution effect and technology spillover effect (Karaduman, 2022;Liu et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Yang

Yin

et al. 2023

Front. Environ. Sci.

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This study applies the augmented mean group (AMG) estimation technique to investigate whether institutional quality and FDI contribute to economic growth and environmental quality in emerging Asian oil-producing and non-oil-producing countries during the period 1975–2020. The estimation of AMG strategy indicates that for every 1% increase in FDI, institutional quality and carbon emissions can significantly boost economic growth by 0.882%, 0.659%, and 0.605%, respectively. Likewise, trade liberalization, transport infrastructure and urbanization can significantly boost economic growth. Long-term variable elasticity coefficients based on carbon emissions model suggest that FDI can stimulate carbon emissions, thereby validating the Pollution Heaven Hypothesis (PHH) in selected panel of countries. Institutional quality has a significant negative impact on carbon emissions, while GDP, trade openness, urbanization, and investment in transport infrastructure contribute significantly to carbon dioxide emissions. Country wise estimates of the AMG strategy show that the institutional quality of oil-producing countries has no significant impact on economic growth, but does boost economic growth in non-oil producing countries. The quality of institutions in both non-oil and oil-producing countries can significantly reduce carbon emissions. FDI stimulates economic growth in oil-producing countries compared to non-oil-producing countries. However, FDI contributes significantly to both oil and non-oil-producing CO2 emissions, thus validating PHH. Controlling factors such as economic growth increase significantly to CO2 emissions in oil-producing countries, while, CO2 emissions from petro-states stimulate more to economic growth than non-petroleum states. The impact of trade liberalization on economic growth is significantly positive in both oil and non-oil-producing countries, but the contribution of non-oil-producing economies is higher than that of oil-producing countries. Compared with non-oil producing countries, trade liberalization in oil-producing countries contributes more to carbon emissions. Investment in transportation infrastructure significantly boosted economic growth in both oil and non-oil producing countries, but oil producing countries contributed more than non-oil producing countries. A range of policy proposals were discussed to achieve economic and environmental sustainability.

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Section: Introductionmentioning

confidence: 99%

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Yang

Yin

et al. 2023

Front. Environ. Sci.

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“…Some studies have addressed the heterogeneous effects of economic complexity on the environment by taking cognizance of the conditional distributions (quantiles) of the environmental degradation measure. Using data for OECD countries between 1971 and 2018, Majeed et al (2021) employ the fixed effects quantile regression estimation to observe an increasing effect of economic complexity is evident in all CO 2 emissions quantiles except in the 90th and 95th quantiles where this effect is not noticeable. Interestingly, the authors find that this increasing effect reduces as the CO 2 emissions quantiles increase.…”

Section: Literature Reviewmentioning

confidence: 99%

“…It is important to understand how environmental degradation is influenced by economic complexity in order to design effective climate change mitigation policies (Romero & Gramkow, 2021). It is present in existing literature that economic complexity and environmental degradation are interdependent of each other (see Abbasi et al, 2021; Balsalobre‐Lorente et al, 2022; Caglar et al, 2022; Majeed et al, 2021; You et al, 2022; Zheng et al, 2021). In the theoretical context, the environment is believed to degrade when income or economic growth rises.…”

Section: Introductionmentioning

confidence: 99%

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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“…Economic complexity has generated the increase in CO 2 emissions in lower and higher middle-income countries, and has a limited environmental degradation in high-income economies. According to the results of [73], in the OECD countries over the period 1971-2018, the long run impact of economic complexity is positive and significant on carbon emissions. Moreover, the impact is higher in the economies with a low level of CO 2 emissions.…”

Section: Analysing the Link Between Economic Complexity And Environmentmentioning

confidence: 99%

Economic Complexity: A New Challenge for the Environment

Neagu

2021

Earth

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The present paper offers a view regarding the challenge induced in the environment by the productive structure of countries. Economic complexity, which links the productive structure of a country with its knowledge, labour, and sophistication, seems to raise new challenges for the environment’s preservation and quality. The debate on this linkage in existing literature is at a beginning, stimulating the mind of scholars, researchers, and policy makers. The relationship between economic complexity and the environment is multi-faced and creates unimagined challenges for humanity in its path toward social and economic progress. The paper reviews the main dimensions of the linkage between economic complexity and the environment, including moderating factors of this connection as they are reported in the existing literature.

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Economic complexities and environmental degradation: evidence from OECD countries

Cited by 28 publications

References 51 publications

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Economic complexity and environmental degradation: Evidence from OECD countries

Economic Complexity: A New Challenge for the Environment

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