<abstract xmlns="http://www.w3.org/1999/xhtml">

<sec><h3>Research Purpose</h3>
<p>The study examines the effect of economic complexity on carbon dioxide emissions in the Next 11 countries with the view to validate or refute the economic complexity-Kuznets curve (E<sub>c</sub>KC) between 1995 and 2019. The Next 11 countries include Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam.</p>
</sec>
<sec><h3>Design/Methodology/Approach</h3>
<p>Two econometric methods, correlated Panel standard error (PCSE) and feasible generalized least squares (FGLS) estimating techniques, are used to achieve the objectives of the study.</p>
</sec>
<sec><h3>Findings</h3>
<p>The estimates from the FGLS approach are consistent with that of the PCSE approach. The results from both techniques show that economic complexity increases carbon emissions in the Next 11 countries. Also, from the E<sub>c</sub>KC, the study invalidates the hypothesis and supports a positive monotonic linear relationship between economic complexity and carbon emissions, which also means the “<italic>pollution haven hypothesis”.</italic></p>
</sec>
<sec><h3>Originality/Value/Practical Implications</h3>
<p>The study examines whether the environmental Kuznets curve (EKC) in the Next 11 countries is valid or not. To do this, the current study is different from earlier studies in that it uses economic complexity—that is, the economic complexity-Kuznets Curve (E<sub>C</sub>KC)—instead of GDP. This is explained by the fact that environmental issues should involve the development of more advanced commodities rather than just raising an economy's GDP productivity. And most of the countries in the Next 11 countries are currently shifting their economies to produce more complex goods.</p>
</sec>
</abstract>

Research Purpose
The study examines the effect of economic complexity on carbon dioxide emissions in the Next 11 countries with the view to validate or refute the economic complexity-Kuznets curve (EcKC) between 1995 and 2019. The Next 11 countries include Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam.

Design/Methodology/Approach
Two econometric methods, correlated Panel standard error (PCSE) and feasible generalized least squares (FGLS) estimating techniques, are used to achieve the objectives of the study.

Findings
The estimates from the FGLS approach are consistent with that of the PCSE approach. The results from both techniques show that economic complexity increases carbon emissions in the Next 11 countries. Also, from the EcKC, the study invalidates the hypothesis and supports a positive monotonic linear relationship between economic complexity and carbon emissions, which also means the “pollution haven hypothesis”.

Originality/Value/Practical Implications
The study examines whether the environmental Kuznets curve (EKC) in the Next 11 countries is valid or not. To do this, the current study is different from earlier studies in that it uses economic complexity—that is, the economic complexity-Kuznets Curve (ECKC)—instead of GDP. This is explained by the fact that environmental issues should involve the development of more advanced commodities rather than just raising an economy's GDP productivity. And most of the countries in the Next 11 countries are currently shifting their economies to produce more complex goods.

Does Economic Complexity Influence Carbon Emissions? Evidence from Next Eleven Countries

Economics and Culture

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Research Purpose
The study examines the effect of economic complexity on carbon dioxide emissions in the Next 11 countries with the view to validate or refute...

Does Economic Complexity Influence Carbon Emissions? Evidence from Next Eleven Countries

Published Online: Jun 20, 2024

Page range: 64 - 76

Received: Feb 02, 2024

Accepted: May 07, 2024

DOI: https://doi.org/10.2478/jec-2024-0005

Keywords
economic complexity, carbon dioxide emissions, Next 11 countries, PCSE, FGLS

© 2024 Tolulope Temilola Osinubi., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Does Economic Complexity Influence Carbon Emissions? Evidence from Next Eleven Countries

Published Online: Jun 20, 2024

Page range: 64 - 76

Received: Feb 02, 2024

Accepted: May 07, 2024

DOI: https://doi.org/10.2478/jec-2024-0005

Keywordseconomic complexity, carbon dioxide emissions, Next 11 countries, PCSE, FGLS

© 2024 Tolulope Temilola Osinubi., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
economic complexity, carbon dioxide emissions, Next 11 countries, PCSE, FGLS