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The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries
Author(s) -
Doğan Buhari,
Driha Oana M.,
Balsalobre Lorente Daniel,
Shahzad Umer
Publication year - 2020
Publication title -
sustainable development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.115
H-Index - 64
eISSN - 1099-1719
pISSN - 0968-0802
DOI - 10.1002/sd.2125
Subject(s) - renewable energy , economics , natural resource economics , cointegration , panel data , environmental degradation , energy consumption , environmental pollution , consumption (sociology) , climate change , population , environmental economics , environmental science , econometrics , environmental protection , engineering , ecology , electrical engineering , biology , social science , demography , sociology
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.