The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries


Dogan B., Driha O. M., Balsalobre Lorente D., Shahzad U.

SUSTAINABLE DEVELOPMENT, vol.29, no.1, pp.1-12, 2021 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 29 Issue: 1
  • Publication Date: 2021
  • Doi Number: 10.1002/sd.2125
  • Journal Name: SUSTAINABLE DEVELOPMENT
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, PASCAL, ABI/INFORM, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), Business Source Elite, Business Source Premier, CAB Abstracts, Environment Index, Geobase, Greenfile, PAIS International, Political Science Complete, Pollution Abstracts, Public Affairs Index, Sociological abstracts, Veterinary Science Database, Worldwide Political Science Abstracts, Civil Engineering Abstracts
  • Page Numbers: pp.1-12
  • Keywords: AMG, ARDL, economic complexity, environmental degradation, FMOLS and DOLS, OECD countries, renewable energy consumption, technical effect
  • Süleyman Demirel University Affiliated: Yes

Abstract

Under the growing threats of climate change, innovation and pollution reduction have become driving forces for cleaner economic growth and the environment. This study endeavors to analyze the effect of economic complexity-understood as structural transformation toward more sophisticated and knowledge-based production, economic progress, renewable energy consumption, and population growth over carbon emissions. Our study employs panel data for a sample of 28 OECD countries covering the period of 1990-2014. The main contribution to the energy economics literature is given by bringing together the concept of environmental degradation and economic complexity controlling via renewable energy consumption and economic and population growth. Based on the extensive empirical analysis (augmented mean group estimator, panel cointegration, and panel regression techniques), we conclude that economic complexity and renewable energy might help in mitigating the environmental degradation problems in OECD countries.