Unveiling the Nexus Between Economic Complexity and Environmental Sustainability: Evidence from BRICS-T Countries
TLDR
This study finds that economic complexity positively impacts environmental performance in BRICS-T countries, while economic growth and energy intensity hinder it.
Key contributions
- Economic complexity positively impacts environmental performance in BRICS-T nations.
- A 1% rise in economic complexity boosts environmental performance by 0.020% to 1.243%.
- Economic growth, energy intensity, and population density negatively affect environmental performance.
- Renewable energy use significantly improves environmental sustainability.
Why it matters
This research highlights the dual role of economic factors in environmental sustainability, showing that while complexity helps, traditional growth metrics often harm. It provides crucial insights for policymakers in BRICS-T countries to foster sustainable development through strategic economic and energy policies.
Original Abstract
This study analyses the impacts of economic complexity on environmental performance in BRICS-T countries. Annual data for the period 1999-2021, Durbin-Hausman cointegration test and Augmented Mean Group (AMG) estimator are used in the analysis. The robustness of the Panel AMG results is tested with CCEMG and CS-ARDL methods. The results indicate that economic complexity has a positive impact on environmental performance. An increase of 1% in the economic complexity index increases environmental performance in BRICS-T countries between 0.020% and 1.243%. However, economic growth, energy intensity and population density were found to have a negative impact on environmental performance. Renewable energy use, in contrast, contributes positively to environmental performance.
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