Economic complexity and CO2 emissions in OECD countries: sector-wise Environmental Kuznets Curve hypothesis

Does economic complexity help in achieving environmental sustainability? New empirical evidence from N-11 countries

In view of the SDGs argued by UNO, it is vital to address the pressing issues regarding sustainable development. The aim of current study is to investigate the impact of economic complexity (ECC) on environmental sustainability. To achieve this aim, we sampled the 25 years of data of Next-11 countries over the period 1995 to 2019. The economic complexity was measured by the economic complexity index (ECI) while environmental sustainability was measured by two proxy variables including CO2 and greenhouse gas (GHG) emissions. The empirical analysis was established by utilizing the unit root test, cointegration test, FMOLS (fully modified OLS) and DOLS (dynamic OLS) models. The estimated coefficient values disclosed that ECC has a negative and statistically significant relationship with both CO2 and GHG emissions in the long run, implying that ECC ensured environmental sustainability. In addition, the analysis reveals that financial development has a negative while economic growth and energy imports have a positive and statistically significant association with both CO2 and GHG emissions. The findings of the current study suggested an important policy regarding the focus on ECC for achieving environmental sustainability in underlying economies. This study provides robustness to the existing literature in alternative data settings (N-11 countries) and by the unique objective of focusing on environmental sustainability.

Ecofeminism or techno-centrism? Analysing the gender-environment concoction in the Anthropocene: a study of OECD countries

Women's participation and technological innovation have a crucial role in ensuring environmental sustainability in the long-run. However, the nature of this relationship has diverse opinions across the continuum. The present study focuses on the empirical relevance of this debate based on the theoretical underpinnings of ecofeminism and techno-centrism, using panel data on 37 OECD countries for the period 1990-2019. Employing the Pooled Mean Group (PMG) approach, the study constructs two models, based on ecofeminism and techno-centrism, respectively, and finds that both have a negative and significant impact on environmental degradation measured by the ecological footprint. The results suggest that equality of women in the labour markets and technological innovation through R&D expenditure are both viable developmental tools for ensuring environmental sustainability. Moreover, the empirical estimation also confirms the existence of an N-shaped environmental Kuznets curve between economic growth and environmental degradation in the case of selected OECD countries in both ecofeminist and techno-centric models.

The mediating role of renewable energy, sectoral output and economic growth on greenhouse gas emissions: African regional perspective

Global greenhouse gas emissions are increasing when they should be progressively reducing, given worldwide concerted emissions mitigation efforts and protocols. To effectively tackle emissions to foster a sustainable climate, the situation's complexity needs a sector- and region-specific approach, not a one-stop analysis. We must first understand where the emissions originate-which sectors contribute the most to them. This study employs a panel multiregional framework with advanced econometric techniques accounting for cross-sectional dependence and heterogeneous slope coefficients to analyse GHG emissions (CO2 and CH4), sectoral output, economic growth and renewable energy dynamics across African regions from 2010 to 2019. The empirical findings are as follows: First, regional impacts of the economic sectors vary substantially, reflecting technological and socioeconomic differences leading to heterogeneous environmental patterns in the short and long term. Second, the estimated EKC turning points are uniformly lower, indicating slower environmental impact growth with sectoral development in African regions. Third, trade and urbanization are critical drivers of emissions in most regions and economic sectors, with a more pervasive impact on CO2 emissions than CH4 emissions. Finally, sectoral output imposes differential indirect CO2 and CH4 emissions effects via renewable energy, with East African manufacturing exhibiting the most significant emissions-reduction impact. Disaggregated, regional, and sectoral-specific strategies are recommended for designing green development pathways policies.

Impact of green digital finance on green economic recovery and green agricultural development: implications for green environment

This study explores the potential of green digital finance and green agricultural growth to contribute to the green economic recovery of the BRICS economies. We examine the relationship between these variables using empirical data and various statistical techniques, including vector error correction, co-integration, unit root tests and long-run analysis. Our results suggest that well-functioning financial institutions play a crucial role in facilitating the structural transformation of green digital finance and promoting green agricultural growth to achieve green economic recovery in the BRICS region. Our findings underscore the need for pro-financial and green economic development policies and institutions to support and enhance economic recovery. Our results are robust and supported by our study. We also suggest future research directions for stakeholders interested in promoting sustainable economic growth in the BRICS countries.

Exploring necessary and sufficient conditions for carbon emission intensity: a comparative analysis

This research investigates the factors influencing carbon emission intensity in 94 countries during 2018 using two qualitative methods: necessary condition analysis (NCA) and fuzzy-set qualitative comparative analysis (fsQCA). The study covers variables related to economics, human geography, energy, and institutions, showing significant variations among them. The NCA model identifies economic complexity and fossil energy consumption as necessary conditions for high-carbon emission intensity. On the other hand, the fsQCA model reveals sufficient conditions for both high- and low-carbon emission intensity, presenting different causal combinations of variables. For high-carbon emission intensity, nine causal solutions are identified, emphasizing the roles of economic growth, urbanization, fossil energy consumption, and institutional quality. Reducing carbon emission intensity requires addressing economic complexity and reducing reliance on fossil energy consumption. Policymakers should focus on sustainable economic development, environmentally friendly urbanization, and transitioning to renewable energy sources. This research's originality lies in its qualitative approach, going beyond traditional regression methods to explore necessary and sufficient conditions for carbon emission intensity. It offers valuable insights into the complex interplay of variables, providing multiple causal configurations for both high- and low-carbon emission intensity.

Asymmetrical analysis of economic complexity and economic freedom on environment in South Asia: A NARDL approach

The environment has become a growing concern for many countries, as pollution and other environmental degradation can harm human health, economic growth, and overall well-being. This paper probes into the asymmetrical implications of economic complexity and freedom on ecological quality in four South Asian countries from 1995 to 2019. Using Nonlinear Autoregressive Distributed Lag methodology approach, our findings indicate that carbon dioxide (CO2) emissions are intensified by economic freedom both in the long and short term, while negative and positive shocks to economic complexity increase CO2 emissions in the long term. However, a negative economic complexity shock increases CO2 emissions, whereas a positive shock has the opposite effect in the short run. Moreover, our results confirm the validity of the environmental Kuznets curve (EKC) hypothesis in the long run. Furthermore, we find that renewable energy usage and the interaction of FDI and renewable energy usage can help reduce environmental damage in both the short and long run. The findings suggest that countries should focus on attracting foreign direct investment that promotes the use of renewable energy. Additionally, policies aimed at encouraging renewable energy use should be implemented. It is important to note that as economic freedom and complexity increase, there is a corresponding increase in CO2 emissions. Therefore, South Asian policy makers are advised to prioritize the reduction in fossil fuels, the promotion of energy-saving technologies and efficient production, and trade that encourages the transition of renewable energy sources to reduce CO2 emissions.

A revisit of the EKC hypothesis in top polluted African countries via combining the ARMEY curve into the Kuznets curve: A Fourier ARDL approach

The present research reexamines the validity of the EKC hypothesis in the top three polluted nations in Africa, Algeria, Egypt, and South Africa, over the period 1970-2020. The central idea of the research is to reexamine the EKC hypothesis by incorporating the ARMEY curve linking government spending and GDP into the Kuznets curve, as suggested by Işık et al. Environ Sci Pollut Res 29(11):16472-16483, (2022) and Ongan et al. Environ Sci Pollut Res 29(31):46587-46599, (2022). To this end, the ARDL equation with a Fourier function is implemented to estimate the long-run drivers of environmental deterioration. The Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model results revealed that the composite model is only valid in Algeria, and the optimal government spending that maximizes CO2 emissions is 16.88% of gross domestic product. On the contrary, the results showed that the composite model is not valid for South Africa and Egypt due to the failure of the desired shapes for the three curves. The outcomes also confirm the role of energy consumption and population as key drivers of environmental degradation in the three countries.

Sustainable environment quality: moderating role of renewable energy consumption in service sector for selected HDR listed countries

Considering environmental deterioration, an emerging global problem, this study is aimed at determining the impact of the service sector economic activity on environmental quality from the environmental Kuznets curve (EKC) perspective and finding ways to reduce the carbon impact of service sector within the EKC relationship. This study proposes that renewable energy intensity in the economy plays an important role in reducing carbon print of service sector. This study is based on secondary data from 1995 to 2021 for different development-wise categorized country groups leading to 115 countries, according to the Human Development Report (HDR) on the Human Development Index (HDI). Estimated results using panel feasible generalized least squares (FGLS) have confirmed inverted U-shaped for very high HDI and medium HDI and U-shaped EKC for low HDI countries. This study is instrumental in confirming the moderating role of renewable energy in the service sector EKC. Policymakers can plan a gradual reduction of carbon footprint in the service sector by transitioning toward renewable energy.

Impact of technology and economic complexity on environmental pollution and economic growth in developing and developed countries: using IPAT and STIRPAT models

These days, the most serious threats to the global economy, society, and humans are climate change and global warming, mainly rooted in the sharp increase of economic activities and their concomitant greenhouse gas emissions. This paper aims to investigate how economic complexity and various sectors of the economy affect environmental and economic development. This study employs a modified IPAT and STIRPAT model to investigate the relationship of environmental pollution and economic development with economic complexity, economic structure, and technology in 21 MENA and 34 OECD countries between 1971-2017. Our findings show that economic complexity and industrialization positively affect economic growth in both groups of countries. However, economic complexity and industrialization affect environmental pollution in MENA and developing countries positively but in OECD and developed countries negatively. This relationship accepts the Environmental Kuznets Hypothesis for the nexus of economic complexity and environmental pollution. According to the findings, policymakers in developing countries should increase environmental considerations in their development planning. Also, developed countries should assist developing countries in their endeavors to decrease environmental contamination by supplying technology transfer and financial aid.

Toward a sustainable development in sub-Saharan Africa: do economic complexity and renewable energy improve environmental quality?

Emission reduction has become more crucial for environmental sustainability in light of the growing concerns about climate change. Many studies have identified that structural change and clean energy technologies improve environmental quality. However, there is an absence of empirics that focus on the sub-Saharan Africa (SSA) context, which shifted the structure of their economies from the agriculture sector towards sophisticated manufacturing activities that affect the environment. Hence, this study aims to investigate the impacts of economic complexity and renewable energy consumption on carbon emissions in 41 SSA countries between 1999 and 2018. The study adopts contemporary heterogeneous panel approaches to overcome heterogeneity and cross-sectional dependence issues that usually arise in panel data estimates. The empirical findings of the pooled mean group (PMG) cointegration analysis indicate that renewable energy consumption alleviates environmental pollution in the long run and short run. In contrast, economic complexity improves environmental quality in the long run but not in the short run. On the other hand, economic growth contributes adversely to environmental degradation in the long run and short run. The study indicates that urbanization worsens environmental pollution in the long run. In addition, the outcomes of the Dumitrescu-Hurlin panel causality test indicate a unidirectional causal path from carbon emissions to renewable energy consumption. The causality results also suggest that carbon emission has bidirectional causation with economic complexity, economic growth, and urbanization. Therefore, the study recommends that SSA countries change their economic structure towards knowledge-intensive production and adopt policies that encourage investment in renewable energy infrastructures by subsidizing the initiatives to achieve clean energy technologies.

How do energy prices and climate shocks affect human health? Insights from BRICS

The presented work analyzes the energy prices, climate shock, and health deprivation nexus in the BRICS economies for the period 1995-2020. Panel ARDL-PMG technique is used to reveal the underexplored linkages. The long-run estimates of energy prices are observed to be negatively significant to the health expenditure and life expectancy model, whereas, positively significant to the climate change model. These findings suggest that energy prices significantly reduce health expenditures and life expectancy and, thus, increase the death rate in the BRICS economies. The long-run country-wise estimate of energy prices is found negatively significant in case of Brazil, India, China, and South Africa. Alongside, the group-wise significance of CO2 emissions is discovered to be negatively, positively, and insignificant in the cases of life expectancy, death rate, and health expenditure models, respectively. Besides, country-wise long-run estimate of CO2 emissions witnesses negative significance for Russia, India, China, and South Africa.