The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach

Neagu, Olimpia

doi:10.3390/su11174753

Cited by 141 publications

(102 citation statements)

References 101 publications

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“…Second, FDI is an essential policy tool to create green development paths in Sao Paulo state. In this sense, local policies must focus on strategies to attract green technologies [92], clean energy sources [93], green jobs and products [94], and higher productivity [95]. Note that FDI is crucial to promote economic growth because it guarantees access to foreign firms' knowledge and technologies to transform the economic structure.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

et al. 2021

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There is much discussion on the non-linear relationship between economic growth and carbon dioxide (CO2) emissions. Additionally, the effects of Foreign Direct Investment (FDI) on the environment are ambiguous, as both beneficial (i.e., pollution-halo) and harmful (i.e., pollution-haven) effects were found. Therefore, the literature presents no consensus on either of these topics. This is especially problematic for developing regions, as these regions represent growing economies interested in receiving foreign investments, and their CO2-related research is limited. This study aims to understand the impacts of economic growth and FDI on the CO2 emissions of São Paulo state, Brazil. To perform this study, a unique dataset on regional FDI was built, and 592 municipalities were included. The analyses combine linear and non-linear estimations, and the results suggest a non-linear relationship between Gross Domestic Product (GDP) per capita and CO2 emissions, along with a negative association between FDI and CO2. Finally, this study discusses possible policy implications and contributes to the international literature.

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Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

et al. 2021

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“…It is worth noting that the absolute level of the income elasticity would not provide a meaningful interpretation, in the sense that there might be omitted variable bias in the fixed effect terms. Note that Neagu [19] has considered an economic complexity index as an additional covariate. Instead, we may give an economic interpretation on the estimated income elasticity as the relative magnitude of the income effect on CO 2 emission, and therefore, temporal dynamics is the key to understanding the graphs of Figure 4 [20].…”

Section: Estimation Resultsmentioning

confidence: 99%

Nonlinearity between CO2 Emission and Economic Development: Evidence from a Functional Coefficient Panel Approach

Nam¹,

Lee

Jeon³

2020

Sustainability

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This paper investigates the nonlinear relationship between CO2 emission and economic development using a newly developed functional coefficient panel model. In contrast to the existing literature, which suggests that the income elasticity of CO2 emission is parametrically modeled as a function of income, the income coefficient of CO2 emission is set as a function of both income and time. Then, we estimate the income elasticity in a nonparametric way using the country panel data covering 1971–2017. By doing so, we impose richer dynamics to the income elasticity not only over income but also over time. Our empirical results indicate that the income elasticity has decreased over time for high-income countries, whereas it has increased over time for low-income countries.

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“…More recently, Neagu (2019) argued that economic complexity can exert U-shape effects on the CO2 emissions. The author used COMTRADE data to compute the economic complexity index for the 25 European countries, and unlike the other studies he replaced the income per capita by Economic Complexity Index.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Kuznets Curve Revisit: Role of Economic Diversity in Environmental Degradation

Ghazal

Karimi

Javaheri

2021

Preprint

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Background: Unlike the classical view, a new path of economic growth and development among the emerging and developing nations seems to have distinct impact on environment. Customary patterns of production and consumption have undergone significant changes and the new “growth with non-smoke-staks” has put the developing economies on a path that can change Environmental Kuznets Curve (EKC) fundamentally. With this view, the current study attempts to examine how these growth patterns among developing world have impacted the degradation of environment. We argue that including income per capita and share of manufacturing would not capture the full growth dynamic of developing and emerging countries and therefore it masks the real impacts on environmental degradation. To this end, we introduce the Economic Complexity Index (ECI) to the model to reflect the full impacts of new growth approaches on CO2 emission levels by using a panel data analyses of 100 emerging and developing countries over 1963-2018 period.Results: The results indicate that complexity of the economies of developing and emerging countries has added to the CO2 emission levels in absolute terms but it has helped to reduce the CO2 intensity. Conclusions: The implications of the findings for developing and developed countries could be quite significant. For advanced economies, a downwardly-shifted Kuznets curve implies that, on one hand, technology transfers have been successful in curbing the environmental degradation of developing economies and, on the other hand, the economic transformation strategies of developing world is working in a sustainable way.

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The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach

Cited by 141 publications

References 101 publications

Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

Nonlinearity between CO2 Emission and Economic Development: Evidence from a Functional Coefficient Panel Approach

Environmental Kuznets Curve Revisit: Role of Economic Diversity in Environmental Degradation

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