Economic complexity, international trade, and environmental pollution
Lucas Leão,
Eduardo Gonçalves and
Fernando Salgueiro Perobelli
Economic Systems Research, 2025, vol. 37, issue 3, 373-401
Abstract:
This study analyzes the impact of production and international trade between developed and emerging regions, which have distinct levels of economic complexity, on pollution levels (measured by CO2 emissions). To do so, we calculate the regional Miyazawa trade multipliers with data from the input—output and CO2 emissions matrices from the Eora Global Supply Chain Database (Eora) and the Economic Complexity Index (ECI) from the Observatory of Economic Complexity (OEC) for groupings of 87 countries over the period 2000–2016. The results reveal, among other things, that less complex regions pollute more than regions with a higher degree of complexity, regardless of income level. Furthermore, this suggests that more complex regions tend to seek out less complex regions as ‘pollution refuges’.
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:taf:ecsysr:v:37:y:2025:i:3:p:373-401
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DOI: 10.1080/09535314.2025.2477129
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