Air pollution and life expectancy in the USA: Do medical innovation, health expenditure, and economic complexity matter?

Regardless of a country's income level, air pollution poses a significant environmental threat to human health. Long-term exposure to air pollution often triggers cardiovascular and respiratory diseases. Thus, air pollution significantly reduces life expectancy worldwide. The USA is one of the world's largest polluters of CO2 emissions, often used to represent air pollution. In this context, the main objective of this study is to examine the relationship between air pollution and life expectancy in the USA. In doing so, we control for the role of medical innovation, health expenditures, economic complexity, and government effectiveness using data for the period 1995-2019. The results indicate the existence of a cointegration relationship in the proposed model. The long-run coefficients are statistically positive for medical innovation and negative for CO2 emissions, economic complexity, and government effectiveness. On the other hand, health expenditures are ineffective in terms of life expectancy. Accordingly, medical innovation raises life expectancy, whereas CO2 emissions, economic complexity, and government effectiveness decrease it. Higher economic prosperity and health expenditures are not always beneficial to life expectancy. Therefore, policymakers need to take action to reduce air pollution and increase the comprehensiveness of economic prosperity benefits and health expenditure efficiency.

Does economic complexity help in achieving environmental sustainability? New empirical evidence from N-11 countries.

In view of the SDGs argued by UNO, it is vital to address the pressing issues regarding sustainable development. The aim of current study is to investigate the impact of economic complexity (ECC) on environmental sustainability. To achieve this aim, we sampled the 25 years of data of Next-11 countries over the period 1995 to 2019. The economic complexity was measured by the economic complexity index (ECI) while environmental sustainability was measured by two proxy variables including CO2 and greenhouse gas (GHG) emissions. The empirical analysis was established by utilizing the unit root test, cointegration test, FMOLS (fully modified OLS) and DOLS (dynamic OLS) models. The estimated coefficient values disclosed that ECC has a negative and statistically significant relationship with both CO2 and GHG emissions in the long run, implying that ECC ensured environmental sustainability. In addition, the analysis reveals that financial development has a negative while economic growth and energy imports have a positive and statistically significant association with both CO2 and GHG emissions. The findings of the current study suggested an important policy regarding the focus on ECC for achieving environmental sustainability in underlying economies. This study provides robustness to the existing literature in alternative data settings (N-11 countries) and by the unique objective of focusing on environmental sustainability.

The hidden cost of sophistication: economic complexity and obesity.

Obesity has become a global health crisis, affecting people of all ages, regions, and socio-economic backgrounds. While individual behaviour and genetic factors contribute to obesity, the role of economic complexity in the evolution of obesity rates has not yet been empirically studied. Using a large panel of 110 countries over the period 1976-2015, this article estimates the linear and non-linear links between obesity and economic complexity. According to baseline results, an improvement in economic complexity will lead to an increase in obesity up to a certain threshold. Beyond this turning point, any further increase in economic complexity will significantly contribute to obesity reduction. The issue of simultaneity is tackled using the two-stage instrumental variable method. Our findings support the Obesity Kuznets Curve (OKC) pattern, which suggests that economic progress and obesity have an inverted U-shaped relationship. Our results suggest that greater embeddedness of knowledge in the products produced and exported by a country increases the likelihood of obesity in society, at least up to a threshold. From these results, some important policy implications are discussed.

Forecasting synergistic pathways between rare earth elements, renewable energy, and product and economic complexities in achieving a low-carbon future.

Recent decades have witnessed an unprecedented transformation in the global energy landscape, driven by environmental concerns and the quest for sustainable economic growth. As the world grapples with the urgent need for decarbonization, the utilization of renewable energy technologies with the instrumental role of rare earth elements (REEs) has come to the forefront. However, empirical investigations into their synergistic pathways for product and economic complexities concerning achieving a low-carbon future remain scarce. Therefore, we forecast synergistic pathways between the REE supply, renewable energy, economic and product complexities, and GDP growth using a panel dataset of 11 REE-producing countries from 1990 to 2023. We used Common Correlated Effects and Temporal Causal Models as primary methods to estimate panel long-run elasticities and subsequently forecast mutual causal synergies between the variables. The results indicated that REE supply led to renewable energy and economic growth that further elevated the countries' product and economic complexities rankings. GDP growth increased REE production, economic complexity, and renewable energy directly, and consequently, product complexity and REE production through them. This underscores the positive role of REE production coupled with renewable energy technologies in achieving a low-carbon future based on economic diversification, enhanced industrial capabilities, and technological sophistication.

Unleashing sustainability in uncertain times: Can we leverage economic complexity, uncertainty, and remittances to combat environmental degradation?

Rapid economic growth and human activities have seriously damaged the environment and hindered the achievement of Sustainable Development Goals (SDGs). Hence, this study aims to explore the impact of economic complexity, uncertainty, and remittance on environmental degradation in 134 countries from 2000 to 2022. In addition, it examines whether uncertainty moderates the relationship between remittance and environmental degradation. Two proxies (ecological footprint and CO2) were used to measure environmental degradation. The analysis was conducted using a cross-sectional dependency test, second-generation unit root test, and panel quantile regression. The results revealed that economic complexity significantly and positively impacted environmental degradation, while uncertainty and remittance significantly and negatively impacted environmental degradation. Furthermore, uncertainty weakened the negative relationship between remittance and environmental degradation. Accordingly, this paper discusses various recommendations and policy implications regarding economic complexity, uncertainty, remittance, and environmental degradation.

Fresh evidence of the impact of economic complexity, health expenditure, natural resources, plastic consumption, and renewable energy in air pollution deaths in the USA? An empirical approach.

Most plastic waste generated from plastic consumption cannot be recycled and is destroyed by burning. As a result of burning plastics, microplastics spread into the atmosphere, increasing air pollution. Respiratory diseases and chronic health problems are caused by air pollution. Approximately 7 million people die each year due to pollution-related ailments. Therefore, it is crucial to provide empirical evidence rather than approximate estimates of the role of plastic consumption in air pollution-related deaths. Also, understanding the causes of air pollution-related deaths and demonstrating the policies' effectiveness will provide valuable insights for policymakers, the international community, and researchers. This study investigates the effects of plastic consumption, health expenditures, natural resources, economic complexity, and renewable energy on air pollution deaths in the USA from 1995 to 2019 using the novel Fourier Augmented ARDL method. The findings show that plastic consumption, health expenditures, natural resources, and economic complexity increase air pollution deaths, while renewable energy decreases it. Such findings imply that plastic consumption is an essential determinant of air pollution-related mortality, that health policy must be reconsidered, that efficient use of resources is important and that sophisticated economic structures do not always produce the desired results. Overall, policymakers should review health policies to reduce deaths from air pollution and take measures to support green growth using renewable energy and economic complexity tools.

Energy transition and environmental stability prospects for OECD economies: The prominence role of environmental governance, and economic complexity: Does the geopolitical risk matter?

The global increase in temperature and climate change signals the need for humanity to reduce greenhouse gas emissions and to adopt eco-friendly lifestyles. The 2023 United Nations Climate Change Conference (COP28) in the UAE emphasized this, urging nations to commit to the Paris Agreement and pursue a greener, carbon-free future. In recent decades, climate change has become a critical issue, primarily because of the extensive use of fossil fuels and conventional energy resources. Economic growth has led to an increase in energy consumption and widespread environmental damage. The present study empirically explores whether any changes in environmental governance, economic complexity, geopolitical risk, and the interaction term influence energy transition and environmental stability in OECD economies over the period 1990-2021. Novel econometric methods, including Westerlund co-integration and the Method of Moments Quantile Regression (MMQR), are employed to address complexities such as cross-sectional dependency and panel causality. The key findings from the MMQR technique showed a positive link between environmental governance and economic complexity in driving sustainable energy transitions, thus bolstering environmental resilience in OECD countries. However, economic complexity counterbalances environmental stability. Significantly, geopolitical risk acts as a moderating variable, enhancing the effects of governance and complexity on sustainable energy practices and environmental stability. Based on these insights, this study recommends strategic initiatives, including investment in eco-friendly technologies, to fast-track the shift to clean energy and strengthen environmental resilience in OECD countries. These strategies align with the broader objectives of global sustainable development, offering a path towards a greener and more sustainable future.

The role of green finance in mitigating climate change risks: a quantitative analysis of sustainable investments.

The dire problem of climate change has garnered more attention in recent years and, with it, the necessity of reducing its damaging effects on the environment. Nevertheless, despite the green finance index's (GFI) potential advantages in combating climate change, empirical studies on the subject's consequences have been few, mostly because of the index's restricted data availability. This study's primary goal is to close this gap by employing panel data analysis to investigate the environmental effects of GFI in China between 2004 and 2021. Econometric methods like the Driscoll-Kraay standard error and other robustness test models are used to look into the links between political risk, green finance, the ecological footprint, and the economic complexity index. According to the research findings, there is a 0.31% and 0.81% decrease in ecological footprint resulting from the implementation of GFI and rises in GDP (gross domestic product). These results suggest that these strategies could play a major role in establishing a sustainable environment. However, in the chosen countries, the ecological footprint increases by 0.81% and 0.80%, respectively, due to the presence of political risk and economic complexity. This study suggests that government involvement is necessary to reduce carbon footprints and protect the ecosystem, based on these empirical findings. Implementing green financing initiatives, fostering technological development, economic diversification, and fostering a stable political environment are all ways to achieve sustainable investments.

The key to sustainability: In-depth investigation of environmental quality in G20 countries through the lens of renewable energy, economic complexity and geopolitical risk resilience.

The world is currently facing urgent climate and environmental issues, such as global warming, ecosystem collapse, and energy shortages. In this context, this study selected data from 2000 to 2021 and employed the Method of Moment Quantile Regression (MMQR) to thoroughly investigate the impact of renewable energy consumption, economic complexity, and geopolitical risks on the ecological footprint of the Group of Twenty (G20) countries. The results indicate that in countries with lower quantiles, renewable energy consumption significantly reduces the ecological footprint, whereas its effect is not prominent in countries with higher quantiles. Economic complexity has a negative impact on the ecological footprint, and this impact becomes stronger as the quantile of the ecological footprint rises. Additionally, economic complexity moderates the effect of renewable energy on the ecological footprint. Geopolitical risks facilitate the growth of the ecological footprint. Likewise, robustness tests such as DOLS, FMOLS, and quantile regression confirm these estimates in the same framework. This study has conducted a profound analysis of global environmental issues, offering innovative perspectives and recommendations for achieving goals related to sustainable energy utilization, mitigating climate change, and improving the ecological environment. The findings of this research will guide policymakers in G20 countries to adopt more effective environmental protection measures, thereby contributing to the construction of a sustainable future.

The dampening effect of geopolitical risk and economic policy uncertainty in the linkage between economic complexity and environmental degradation in the G-20.

The question remains whether high geopolitical risk and economic policy uncertainty will have a dampening or enhancing effect on pollution factors. In this regard, the study empirically investigates the effects of economic complexity, geopolitical risk, economic policy uncertainty, renewable energy consumption and economic growth on environmental pollution for G-20 countries from 1997 to 2018. The long-term coefficient estimates, derived from the FMOLS estimator, support the inverted U-shaped EKC linkages between economic complexity and ecological footprint, carbon footprint and carbon dioxide emissions. Furthermore, over the long term, geopolitical risks, renewable energy use, and the interaction between economic complexity and policy uncertainty have a positive impact on environmental quality in the G-20 economies. Conversely, economic growth and the interaction between economic complexity and geopolitical risk are negatively associated with environmental quality. Additionally, economic policy uncertainty has a positive effect on ecological footprint carbon footprint and carbon dioxide emissions. Finally, causality results revealed that explanatory variables are the cause of environmental pollution indicators. Hence, in order to advance environmental quality in these nations, precautions must be taken to mitigate the effects of economic policy uncertainty and boost the accessibility of renewable energy sources. Additionally, while not advised as a policy measure, the feasible economic fallout of geopolitical risk should also be considered.

Income Inequality, Economic Complexity, and Renewable Energy Impacts in Controlling Consumption-Based Carbon Emissions.

Although many studies have been conducted on the role of renewable energy in the environment, literature has ignored the potential role of socioeconomic indicators in renewable energy and pollution nexus. Also, critical questions arose with the critical factors, such as income inequality and economic complexity, have not been answered properly. This study explores the nexus between income inequality, economic complexity, renewable energy consumption, GDP per capita, and pollution and thus aims to reach efficient policy strategies by revealing empirical evidence. The study follows an environmental impact model structure and conducts the panel-corrected standard errors and fixed effect regression. BRICS countries (Brazil, Russia, India, China, and South Africa) are selected to conduct our research. Annual data covering the period 1990-2017 for the sample countries are employed. Consumption-based carbon dioxide emissions as an indicator of environmental pollution are used since income inequality makes more sense in terms of the consumption side of an economy and is more related to consumers rather than the production sector. The obtained results reveal that income inequality has a positive and significant impact on consumption-based carbon dioxide emissions. However, GDP per capita, renewable energy, and economic complexity reduce pollution. It is also observed that the interaction term of inequality and renewable energy decreases emissions. Findings confirm that socioeconomic indicators, such as economic complexity and income inequality with the interaction of renewable energy, are crucial factors in reducing emissions and designing a greener future.

Analyzing asymmetric ecological performance under structural change, technological innovation, and trade diversification: fresh insights from the USA.

The present research scrutinizes the influences of trade diversification, air transportation, technological innovation, and economic complexity on ecological footprint from 1990 to 2019. The findings of the both time series unit root (with and without structural break) tests confirm that none of a single variable is stationary more than the first difference. Furthermore, the Wald and nonlinear autoregressive distributed lag bound methods check asymmetry and long-term cointegration relationship between the intended variables, respectively. Moreover, this study uses the nonlinear autoregressive distributed lag model to estimate the short-run and long-run coefficients/elasticity of the ecological footprint function. Following the empirical evidence, the findings revealed that positive (negative) components in trade diversification curtail the ecological footprint in the long-run. In addition, a positive shock in air transportation leads to an increase in ecological footprint in the long-run. Nevertheless, a negative shock in air transportation exerts a significant and adverse influence on the level of ecological footprint in the long-run. Furthermore, a positive (negative) shock in technological developments significantly reduces environmental pollution in the US economy in the long-run. Besides, the outcomes from economic complexity discovered a positive shock will significantly overcome the pressure on the environment in the long-run. However, in the short-run, it is observed that negative shock in trade diversification will lead to increase the ecological footprint level in USA. Similarly, a positive shock in air transportation will lead to increase the pollution level in the short-run. In contrast, a negative shock in air transportation will lead to reduce the pressure on the environment in the short-run. Besides, in terms of policy realization, the present research recommends adopting trade synchronization, harmonic trade strategies, and investment in technological innovations to diminish the existing level of ecological footprint in the region. For sustainable development, this study put forward for instantaneously encouraging the expansion of the digital economy and reducing air pollution, accelerating the green transformation, and impelling the industrial agglomeration process in the USA.

The future of green transportation: evaluating the impact of innovation in hybrid electric vehicles relating technologies on carbon dioxide emissions in Asia's top knowledge-based economies.

The significant contribution of the transportation sector to carbon dioxide emissions (CO2e) has become a developing concern for legislators and environmental experts. Innovation in hybrid electric vehicle-related technologies (IHVRTs) has been identified as a possible strategy for reducing CO2e in the transportation industry. Even though IHVRTs have the potential to reduce CO2e, there are insufficient studies on their impact in the top three Asian knowledge-based economies (Japan, South Korea, and Japan). This study attempts to address this gap in the literature by investigating the association between innovation in IHVRTs and CO2e in the top three Asian knowledge-based economies, with independent variables gross domestic product per capita (GDPPC), economic complexity (ECC), renewable energy consumption (RNEC), and financial development (FD). The model's coefficients are estimated using the augmented mean group, which considers cross-country dependencies and country-specific effects. The empirical findings indicate that IHVRTs have a substantial negative effect on CO2e. In addition, FD has a favorable relationship with CO2e, whereas ECC has a negative relationship with CO2e. The results also demonstrated that RNEC reduces CO2e, whereas the GDPPC reduces CO2e. The policy implications of the results imply an urgent need for additional investment in IHVRTs and a transition towards more environmentally conscious and less ecologically damaging economic activity.

Institutional quality, oil price, and environmental degradation in MENA countries moderated by economic complexity and shadow economy.

This paper aims to analyze the link between environmental degradation and institutional quality and the price of oil moderated by economic complexity and the underground economy. We use quantile regressions with annual panel data for 15 countries in the Middle East and North Africa during 1995-2021. The findings indicate that institutional quality, economic complexity, and output positively and heterogeneously impact environmental degradation. However, the square of production has a negative impact, confirming an inverted U relationship between production and environmental degradation. Likewise, we find that the price of oil and the underground economy have a negative and heterogeneous impact on environmental degradation. Based on our results, a potential recommendation for policymakers is that the institutional framework of Middle Eastern and North African countries should be accompanied by a more significant concern for the environment instead of prioritizing extractive growth that is detrimental to the environment's environmental sustainability. Likewise, economic diversification will mitigate environmental degradation and improve formal employment. Our findings are relevant to policymakers and researchers interested in promoting ecological sustainability.

How does economic complexity improve energy efficiency? Mechanism discussion and empirical test.

Energy efficiency represents one of the best productive strategies to lessen the effects of global warming and climate change. Similarly, the manufacturing and export of a wide variety of high-tech, knowledge-based items like chemicals and machinery have significant effects on both economic growth and the environment. The main goal of this study is to examine the long-run effects of economic complexity on energy efficiency in 93 countries over the period from 1995 to 2015. The empirical outcomes reveal that economic complexity improves energy efficiency. Specifically, countries that produce and export a wide range of sophisticated products tend to enjoy higher levels of energy efficiency compared to their counterparts who export a limited range of simple products. Moreover, empirical findings suggest that economic growth and population density increase energy efficiency, while trade impedes it. Further empirical investigations from a mediation analysis revealed that about 63% and 38% of the effects of economic complexity on energy efficiency mediate through income inequality reduction and human capital accumulation, respectively. Based on these results, political leaders and governments are provided with solid reasons to pay more attention to improving their productive structures in order to promote energy efficiency and a green future.

Environmental regulation, renewable electricity, industrialization, economic complexity, technological innovation, and sustainable environment: testing the N-shaped EKC hypothesis for the G-10 economies.

This study examines the validity of the environmental Kuznets curve (EKC) hypothesis and the role of environmental regulation, renewable electricity, industrialization, economic complexity, and technological innovation in sustainable environment for the G-10 economies, namely, Belgium, Canada, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, the United Kingdom, and the USA, from 1994 to 2020. We employed CS-ARDL (cross-sectional augmented distributed lag (CS-ARDL), FMOLS (fully modified ordinary least squares), and DOLS (dynamic ordinary least squares) for the analysis of the data. The estimates confirm the N-shaped EKC hypothesis between the GDP and CO2 emission. Moreover, the long-run estimates exhibit that environmental tax, renewable electricity, economic complexity, and technological innovation have negative effect on CO2 emission, while GDP, industrialization and arable land have positive effect on CO2 emission. Based on these findings, we propose that governments must implement large-scale government plans and initiatives to encourage the development of environmentally friendly technologies and ideas based on renewable energy. Moreover, further growing renewable energy, environmental policies like a carbon tax, investments in green technologies, subsidies, and rewards for renewable energy infrastructure investment should be taken into account.

What do we learn from Nexus between trade diversification and structural change: informing the future about climate action and Sustainability.

Economic complexity is considered key a driver of social change, structural change, and economic development. Economic complexity is mostly used to capture issues apropos product diversification of exports, trade, technological innovation, human knowledge, and skills. The current study has conducted a detailed bibliometric review of economic complexity, export quality, and trade diversification. In doing so, the authors used the literature up to 2021 to unveil economic complexity's contextual information that witnessed structural change, social change, and trade indicators. The current study is the first integrative review to report the theoretical contribution, future research agendas, and thematic analysis of economic complexity, export quality, and export diversification. Our study, on the subject of economic complexity, export diversification, and import diversification in the period from 1966 to 2021, was carried out by systematically scanning 386 documents, and it is one of the pioneering studies in this field. In addition, economic diversity, development, and economic complexity; export diversification, import diversification, trade openness, and economic growth; energy, environmental Kuznets curve, and economic complexity; and sustainability and economic diversification are the four main research topics of the study. The findings are discussed apropos of economic complexity and exports, methodological aspects of economic complexity, and environmental issues nexus with economic complexity. The current study reports novel findings toward a path for achieving SDG-9 (industry and innovation) and SDG-13 (climate action). The biometric review enables researchers and policymakers to understand export quality, economic complexity, and the trade nexus and report future research directions for achieving sustainable growth in industries and innovation.

Asymmetrical analysis of economic complexity and economic freedom on environment in South Asia: A NARDL approach.

The environment has become a growing concern for many countries, as pollution and other environmental degradation can harm human health, economic growth, and overall well-being. This paper probes into the asymmetrical implications of economic complexity and freedom on ecological quality in four South Asian countries from 1995 to 2019. Using Nonlinear Autoregressive Distributed Lag methodology approach, our findings indicate that carbon dioxide (CO2) emissions are intensified by economic freedom both in the long and short term, while negative and positive shocks to economic complexity increase CO2 emissions in the long term. However, a negative economic complexity shock increases CO2 emissions, whereas a positive shock has the opposite effect in the short run. Moreover, our results confirm the validity of the environmental Kuznets curve (EKC) hypothesis in the long run. Furthermore, we find that renewable energy usage and the interaction of FDI and renewable energy usage can help reduce environmental damage in both the short and long run. The findings suggest that countries should focus on attracting foreign direct investment that promotes the use of renewable energy. Additionally, policies aimed at encouraging renewable energy use should be implemented. It is important to note that as economic freedom and complexity increase, there is a corresponding increase in CO2 emissions. Therefore, South Asian policy makers are advised to prioritize the reduction in fossil fuels, the promotion of energy-saving technologies and efficient production, and trade that encourages the transition of renewable energy sources to reduce CO2 emissions.

Transitioning towards a sustainable environment: the dynamic nexus between economic complexity index, technological development and human capital with environmental quality in India.

This paper aims to investigate the dynamic nexus between economic complexity index (ECI), technological development (TIN), human capital (HC) and environmental quality in India for transition towards a sustainable environment. This study is based on secondary data covering the period from 1985 to 2018. For empirical analysis, this study applied "Stochastic Impacts by Regression on Population, Affluence, and Technology" (STIRPAT) model framework under the estimation of autoregressive distributed lag (ARDL) model and vector error correction model (VECM) model. The empirical findings of model 1 show ECI, TIN, HC and urbanization (URB) as the helping hands to mitigate the problem of environmental degradation by shrinking the level of EF, whereas for model 2, ECI and TIN failed to influence the CO2 emissions, but HC served as a stimulant for environmental quality enhancement by declining the level of CO2 emissions. In contrast, GDP growth and URB strengthen the CO2 emissions levels. Moreover, in VECM framework, estimated findings reveal that the covariables Granger-cause EF and CO2 emissions, inferring that causality flows asynchronously from its covariables to EF and CO2. Impulse response function (IRF) revealed that the responses in EF and CO2 emissions ascribed to changes in its covariables. The outcome of the study has some implications for environmental policy strategists to prepare sustainable environment policies and other responsible authorities for sustainable development goal (SDGs), academician and scholars. All the stakeholders involved in environmental economics and policymakers can evaluate this study to design proper policy framework with respect to the environment. There are few studies that explore the dynamic nexus between ECI, TIN and HC with environmental quality in the control environment of URB and GDP growth using the STIRPAT model for India.

Informality, economic complexity, and internalization of rules.

This research aimed to find out the relationship between informality and the internalization of the rules of behavior required for complexity in the economic system, as better knowledge is required for formalization policy to have a greater impact. We use the economic complexity index (ECI) for 2018 at the regional level in Colombia, which combines the country's productive structure with the amount of knowledge and know-how embodied in the goods it produces. The informality measure we use is the individual's affiliation to social security (in particular health insurance), and we use a proxy of civic rule's internalization as an inverse relation with traffic tickets. This research aimed to shed new light on public policy to improve formalization and its economic impact. First, we include a theory that includes both intrinsic and extrinsic motivation types. The self-determination theory or organismic integration theory proposes this theory. Second, we have argued that the motivation to formalize is intrinsic to greater cultural capacity. Individuals gradually internalize rules of behavior that have repercussions on social dynamics. Third, the composition and characteristics of the families in the study sample seem to show that some factors increase the propensity for informality. Our empirical analysis reveals that group of people with a lower educational level are the ones who are more likely to belong to the informal labor market. These results are consistent with the literature. Multivariate Probit regression was used to examine these factors.