How diversification of products impact emissions in China: a provincial perspective.

Currently, global warming and air pollution are the world's most urgent issues partly caused by carbon dioxide (CO2) and sulfur dioxide (SO2) emissions, and prompt actions are needed to address these global concerns. Sustainable development cannot be attained until we reverse the negative impact of economic factors on the quality of the environment. It is noteworthy to offer a new indication on whether and how the empirical liaison between product diversification and environmental degradation evolved in China from 2008 to 2019. Product diversification (PD) is a remedy for reducing environmental degradation (ED). It is a crucial component of energy demand, which a significant impact on reducing energy consumption and ED. The purpose of this study is to investigate the impact of PD on ED in China using the provincial panel dataset. Employing the fixed effects-Driscoll-Kraay standard errors (FE-DKSE) and feasible generalized least squares (FGLS) methods, we discover an inverted U-shaped link between PD and ED. The control variable urbanization (URB) and technological innovation (TI) reduce ED significantly. However, industry value added (IVA) and energy consumption (EC) promote ED. Our results are robust with the addition of various controls in all models. The policy implication from our findings is that, to achieve a target of carbon neutrality, countries should adopt the product diversification strategy.

Natural Resources Depletion, Financial Risk, and Human Well-Being: What is the Role of Green Innovation and Economic Globalization?

Human well-being is the top priority of all nations in the twenty-first century. However, depletion of natural resources and financial risk can negatively impact human well-being, which in turn can make it difficult to realize human well-being. Also, green innovation and economic globalization may play a significant role in human well-being. In this context, this study assesses the impacts of natural resources, financial risk, green innovation, and economic globalization on human well-being in emerging countries from 1990 to 2018. The empirical results from the Common Correlated Effects Mean Group estimator unveiled that natural resources and financial risk negatively affect the human well-being of emerging nations. Furthermore, the results show that green innovation and economic globalization positively contribute to human well-being. These findings are also verified using alternative methods. In addition, natural resources, financial risk, and economic globalization Granger cause human well-being but not the other way round. Furthermore, bidirectional causality exists between green innovation and human well-being. Considering these novel findings, sustainable utilization of natural resources and controlling financial risk are necessary strategies for realizing human well-being. More resources should be allocated for green innovation, and government should encourage economic globalization to attain sustainable development in emerging countries.

The productive capacity and environment: evidence from OECD countries.

Environmental degradation is one of the most important and vital issues of today. In this context, many researchers are testing the environmental impact of different indicators. Many economic parameters affect environmental degradation. At the forefront of these parameters is the productive economic structures of the countries. For the first time in the literature, the present paper discusses the dynamic relationship between carbon dioxide (CO2) emissions, economic growth, and the productive capacity index (PCI) for a panel of 38 organization for economic co-operation and development (OECD) countries spanning the period 2000-2018. In this context, the PCI serves as a measure of the productive economic structure of a country. This empirical study applies panel cointegration techniques to reveal that the series are cointegrated in the long-run. In addition, the pooled mean group-panel autoregressive distributive lag (PMG-ARDL) approach is employed to estimate long-run coefficients. These coefficients confirm the environmental Kuznets curve hypothesis. Finally, the empirical findings confirm that improved productive capacity decreases environmental degradation. This results in important policy recommendations for involved governmental and private stakeholders.

Can green trade save the environment? Introducing the Green (Trade) Openness Index.

Environmental degradation is one of the main drivers of climate change. One of the most broadly accepted tools to minimize environmental degradation is the introduction of "green products". This paper introduces the "Green Trade Openness Index" to (a) measure the importance of green products in a region and (b) revisit the trade-environment nexus in a sample study of 31 OECD countries over the period 2007-2017. The empirical analysis confirms the environmental Kuznets curve hypothesis and - more importantly - demonstrates for the first time that the presence of green products in a country's trade basket reduces that country's ecological footprint. This is essential information for practitioners and policy makers looking for a pathway to sustainable development. Finally, the novel index creates opportunities for future research, as the index can be used as explanatory variable in different research questions and fields of research.

Exploring the linkage between export diversification and ecological footprint: evidence from advanced time series estimation techniques.

In recent literature, scholars discussed the role of export diversification in environmental quality. However, most studies analyzed the role of export diversification in influencing carbon dioxide emissions with mixed results. However, since carbon dioxide emissions specifically capture the environmental effects of energy utilization, a change in the level of carbon dioxide emissions cannot be regarded as a comprehensive measure of environmental deterioration. Also, many previous studies use the original form of the Theil index to measure export diversification, and during the interpretation of the results, they disregard the fact that the lower value of the Theil index indicates higher diversification and vice versa. In this context, to address these gaps in the literature, a study on the contribution of export diversification in ecological footprint is necessary to understand the ecological impacts of export diversification. Therefore, this study analyzes the contribution of export diversification in ecological footprint covering the period between 1965 and 2017 using the STIRPAT model in the context of India which is required to fulfill the demands for resources of over 1.3 billion people. The study relied on the environmental Kuznets curve hypothesis framework to understand the role of export diversification in ensuring environmental sustainability. Using the newly developed Augmented ARDL test, the study established that variables of interest are cointegrated. In the long-run estimation, export diversification reduces the ecological footprint of India and helps establish the inverted-U-shaped nexus between ecological footprint and economic growth. Thus, the environmental Kuznets curve hypothesis was evidenced to hold for India. This important finding divulges that India can control the level of environmental footprints, and therefore decrease environmental degradation by continuously increasing export product diversification. Also, India is on the right path to achieve a reduction in ecological footprint associated with more development when accounting for export diversification in the model. Moreover, energy intensity boosts environmental deterioration, while population density reduces it. Finally, the study discusses strategies to achieve environmental sustainability through increasing export diversification.

The role of trading environment-friendly goods in environmental sustainability: Does green openness matter for OECD countries?

Achieving carbon neutrality targets is a major challenge for Organization for Economic Co-operation and Development (OECD) countries that experience mounting ecological degradation over the last few decades. To deal with this situation, the trading of green products may play a crucial role. However, previous studies have not captured the net impact of green trading, and also the international trade basket used in these studies is proxied by the trade openness index including both environment-friendly and not-so-friendly goods. To provide a solution, this research intends to capture the net effects of green goods on the environment over the period 2003 to 2016 in 35 OECD countries. This study extends the literature by computing a new Green Openness Index based on the OECD Combined List of Environmental Goods (CLEG) basket that consists of 255 products. After this, an empirical model based on the Environmental Kuznets Curve (EKC) hypothesis is developed to test the role of the Green Openness Index in environmental sustainability using methodology robust against heterogeneity and cross-sectional dependence. The outcomes unfolded the validity of the EKC hypothesis in 35 OECD countries. Empirical estimates confirmed that the Green Openness Index, which considers traditional environment-friendly goods as well as environmentally preferable goods, stimulates environmental sustainability. Finally, numerous policies are directed to accomplish carbon neutrality targets.

The impact of export composition on environment and energy demand: evidence from newly industrialized countries.

Since the exports' nature and the productive capabilities of economies and regions play an essential role in driving the energy demand and carbon dioxide (CO2) emissions, the modern literature focuses on the importance of export composition in determining the environmental quality. For this purpose, this study aims to test the composition impact of the trade by using export product diversification, extensive margin, and intensive margin on energy use and environment in a case study for the ten newly industrialized countries (NICs) from 1970 to 2014. Additionally, this study employs some other indicators such as income, urbanization, and economic complexity during our investigations. The obtained results from different panel estimations demonstrate that not only the composition of export products but also the income, urbanization, and economic complexity promote energy use and CO2 emissions. The panel causality results revealed a bidirectional linkage between overall diversification and CO2 emissions, and the intensive margin and CO2 emissions. In contrast, a unidirectional causality ran from CO2 emissions to the extensive margin. Energy consumption presented a bidirectional causality with the overall diversification, intensive margin, economic complexity, and urbanization. Finally, a unidirectional causality is observed from energy consumption to the extensive margin. Based on findings, applicable policies are discussed.

Does trade matter for environmental degradation in developing countries? New evidence in the context of export product diversification.

Global warming is a serious problem facing the world today. To minimize it, scholars are trying to find the reasons behind increasing CO2 emissions. This study examines the effects of overall export product diversification, extensive margin, and intensive margin on CO2 emissions as indicators of environmental degradation in 84 developing countries for the period of 1971-2014 in the context of the environmental Kuznets curve (EKC) hypothesis using three estimators, namely, autoregressive distributed lag (ARDL) bounds test, dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS). The empirical findings reveal that EKC hypothesis is valid. The overall empirical findings from various approaches show that overall diversification, extensive margin, and intensive margin have a positive and significant effect on CO2 emissions.

Does economic complexity matter for environmental degradation? An empirical analysis for different stages of development.

This study is among the first attempts to examine the effect of economic complexity as an indicator of sophisticated and knowledge-based production structures on CO2 emissions for 55 countries over the period of 1971-2014. The countries considered fall into three different income groups, namely high income, higher middle income, and lower middle income. The study employs the panel quantile regression methodology and tests the existence of the environmental Kuznets curve (EKC) hypothesis by including economic complexity and other control variables such as energy consumption, urbanization, and trade openness in its model. The results show that economic complexity has significant impacts on the environment. Based on the analysis, economic complexity has increased the environmental degradation in lower and higher middle-income countries, and has controlled CO2 emissions in high-income countries. Since economic complexity plays a significant role in environmental damage, it is crucial for low- and middle-income countries to adjust their current industrial and production policies to promote economic growth and at the same time protect the environment.

Effects of export concentration on CO2 emissions in developed countries: an empirical analysis.

This paper provides the evidence on the short- and the long-run effects of the export product concentration on the level of CO2 emissions in 19 developed (high-income) economies, spanning the period 1962-2010. To this end, the paper makes use of the nonlinear panel unit root and cointegration tests with multiple endogenous structural breaks. It also considers the mean group estimations, the autoregressive distributed lag model, and the panel quantile regression estimations. The findings illustrate that the environmental Kuznets curve (EKC) hypothesis is valid in the panel dataset of 19 developed economies. In addition, it documents that a higher level of the product concentration of exports leads to lower CO2 emissions. The results from the panel quantile regressions also indicate that the effect of the export product concentration upon the per capita CO2 emissions is relatively high at the higher quantiles.

The impact of economic complexity on carbon emissions: evidence from France.

This paper reanalyzes the determinants of the CO2 emissions in France. For this purpose, it considers the unit root test with two structural breaks and a dynamic ordinary least squares estimation. The paper also considers the effects of the energy consumption and the economic complexity on CO2 emissions. First, it is observed that the EKC hypothesis is valid in France. Second, the positive effect of the energy consumption on CO2 emissions is obtained. Third, it is observed that a higher economic complexity suppresses the level of CO2 emissions in the long run. The findings imply noteworthy environmental policy implications to decrease the level of CO2 emissions in France.

Does export product quality matter for CO2 emissions? Evidence from China.

This paper re-estimates the environmental Kuznets curve (EKC) in China. To this end, it uses the unit root tests with structural breaks and the autoregressive-distributed lag (ARDL) estimations over the period 1971-2010. The special role is given to the impact of export product quality on CO2 emissions in the empirical models. The paper finds that the EKC hypothesis is applicable in China. It also observes the positive effect from energy consumption to CO2 emissions. In addition, it finds that the export product quality is negatively associated with CO2 emissions. The paper also argues potential implications.

Export product diversification and the environmental Kuznets curve: evidence from Turkey.

Countries try to stabilize the demand for energy on one hand and sustain economic growth on the other, but the worsening global warming and climate change problems have put pressure on them. This paper estimates the environmental Kuznets curve over the period 1971-2010 in Turkey both in the short and the long run. For this purpose, the unit root test with structural breaks and the cointegration analysis with multiple endogenous structural breaks are used. The effects of energy consumption and export product diversification on CO2 emissions are also controlled in the dynamic empirical models. It is observed that the environmental Kuznets curve hypothesis is valid in Turkey in both the short run and the long run. The positive effect on energy consumption on CO2 emissions is also obtained in the long run. In addition, it is found that a greater product diversification of exports yields higher CO2 emissions in the long run. Inferences and policy implications are also discussed.