Does Economic Complexity Influence Carbon Emissions? Evidence from Next Eleven Countries

Tolulope Osinubi

Economics and Culture, 2024, vol. 21, issue 1, 64-76

Abstract: Research Purpose The study examines the effect of economic complexity on carbon dioxide emissions in the Next 11 countries with the view to validate or refute the economic complexity-Kuznets curve (EcKC) between 1995 and 2019. The Next 11 countries include Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam. Design/Methodology/Approach Two econometric methods, correlated Panel standard error (PCSE) and feasible generalized least squares (FGLS) estimating techniques, are used to achieve the objectives of the study. Findings The estimates from the FGLS approach are consistent with that of the PCSE approach. The results from both techniques show that economic complexity increases carbon emissions in the Next 11 countries. Also, from the EcKC, the study invalidates the hypothesis and supports a positive monotonic linear relationship between economic complexity and carbon emissions, which also means the “pollution haven hypothesis”. Originality/Value/Practical Implications The study examines whether the environmental Kuznets curve (EKC) in the Next 11 countries is valid or not. To do this, the current study is different from earlier studies in that it uses economic complexity—that is, the economic complexity-Kuznets Curve (ECKC)—instead of GDP. This is explained by the fact that environmental issues should involve the development of more advanced commodities rather than just raising an economy's GDP productivity. And most of the countries in the Next 11 countries are currently shifting their economies to produce more complex goods.

Keywords: economic complexity; carbon dioxide emissions; Next 11 countries; PCSE; FGLS (search for similar items in EconPapers)
JEL-codes: C21 O10 O3 O44 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/jec-2024-0005 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecocul:v:21:y:2024:i:1:p:64-76:n:1005

DOI: 10.2478/jec-2024-0005

Access Statistics for this article

Economics and Culture is currently edited by Velga Vēvere

More articles in Economics and Culture from Sciendo
Bibliographic data for series maintained by Peter Golla ().