Modeling the Relationship Between Economic Complexity and Environmental Degradation: Evidence From Top Seven Economic Complexity Countries

Abstract

The continuous growth in CO2 emissions of nations around the globe has made achieving the aim of sustainable development extremely challenging. Therefore, the current research assesses the connection between CO2 emissions and economic complexity in the top 7 economic complexity countries while taking into account the role of economic growth, renewable energy consumption, and globalization for the period between 1993 and 2018. The research aims to answer the following questions: 1) What is the association between CO2 and the regressors in the long-run? 2) What are the effects of renewable energy consumption, economic growth, economic complexity, and globalization on CO2 emissions? The research utilized the CS-ARDL, CCEMG and panel causality approaches to investigate these interconnections. The empirical outcomes revealed that economic growth and economic complexity increase CO2 emissions while renewable energy consumption and globalization mitigate CO2 emissions. The outcomes of the causality test revealed a feedback causal connection between economic growth and CO2, while a unidirectional causality was established from economic complexity, globalization and renewable energy consumption to CO2 emissions in the top 7 economic complexity countries.

Greening the BRI countries through economic and political reforms

“…BRI countries, as part of a global network, can work together on climate agreements and conservation efforts, sharing knowledge and resources to reduce ecological footprints collectively [ 28 ]. The findings of the study have similar findings to those of earlier studies [ 16 , 22 , 31 – 33 , 45 , 46 ]…”

“…Economic reforms are involved in adopting practices that meet present economic needs while ensuring the long-term viability of natural resources and ecosystems [ 63 ]. Reforms such as investing in renewable energy, promoting energy efficiency, and implementing sustainable agricultural practices can all contribute to reducing the ecological footprint [ 46 ]. These reforms may improve the efficiency of resource use in sectors such as manufacturing, transportation, and construction, less waste is generated, and fewer resources are consumed [ 6 ].…”

“…The study also finds that although political reforms create uncertainty in the beginning, they ultimately restore trust in political institutions, attract more investment, promote the spread of green technology, and ultimately lead to improved environmental performance and increased per capita income [32,44]. Research indicates that a well-designed economic and political framework can drastically improve environmental performance [32,[45][46][47][48][49][50][51][52][53][54]. Political reforms can lead to the development and enforcement of more robust environmental policies and regulations.…”

Environmental technology, economic complexity, renewable electricity, environmental taxes and CO2 emissions: Implications for low-carbon future in G-10 bloc

“…On the contrary [ 89 ], revealed that ECI raises CO 2 levels in the United States. Similarly [ 90 ], proposed that CO 2 emissions rise when ECI increases in the seven countries with the greatest ECI. Furthermore [ 7 ], shown that collective economic complication reduces environmental degradation in India.…”

تحليل تأثير النمو الاقتصادي على التدهور البيئي في مصر وفقًا لمنحنى كوزنتس في الفترة من (1980 – 2021)

“…‫المخصص‬ ‫التمويل‬ ‫وينخفض‬ ‫البيئي،‬ ‫الوعي‬ ‫ينخفض‬ ‫االقتصادي‬ ‫النمو‬ ‫بداية‬ ‫في‬ ‫أنه‬ ‫بسبب‬ ‫ذلك‬ ‫ويرجع‬ ‫الرغبة‬ ‫المجتمعات‬ ‫لدى‬ ‫سيكون‬ ‫الناتج‬ ‫يادة‬ ‫ز‬ ‫مع‬ ‫لكن‬ ‫البيئي،‬ ‫التلوث‬ ‫لمنع‬ ‫المتقدمة‬ ‫التقنيات‬ ‫افر‬ ‫يتو‬ ‫ال‬ ‫و‬ ‫البيئة،‬ ‫لحماية‬ ‫تكاليف‬ ‫دفع‬ ‫على‬ ‫ة‬ ‫القدر‬ ‫و‬ ‫للبيئة‬ ‫صديق‬ ‫اإلنتاج‬ ‫نحو‬ ‫التحرك‬ ‫و‬ ‫اإلنتاج‬ ‫تقنيات‬ ‫وتحسين‬ ‫البيئة،‬ ‫حماية‬(Martins, et al, 2021) …”