Economic complexity, CO2 emissions, and the mediating roles of energy structure and energy efficiency: a spatial panel analysis

Yinghua Ren, Yingxin Mo and Wanhai You

Applied Economics, 2025, vol. 57, issue 1, 1-15

Abstract: This study examines the spatial effects of economic complexity on carbon emissions in 82 countries from 2001 to 2019 based on a spatial panel model. Our research explores the spatial mediating roles of energy structure and energy efficiency, considering both local and spillover effects. We find economic complexity has a positive local effect, but a negative spillover effect on carbon emissions. The positive local effect is more potent in countries with high economic complexity compared to low ones. Economic complexity promotes local carbon emissions by curbing local energy structure but limits the carbon emissions of neighbours by boosting their energy efficiency. This study enriches the relevant achievements of the mechanism by which economic complexity impacts carbon emissions. Governments should take advantage of the environmental benefits of economic complexity, focus on technological improvements and green production, optimize the energy mix and promote energy efficiency.

Date: 2025
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DOI: 10.1080/00036846.2024.2302930

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