Document Type : Research Paper
Authors
1 razi university
2 Razi University
Abstract
The purpose of this study is to investigate the impact of economic complexity on the ecological footprint in selected Asian countries (China, India, Japan, South Korea, and Iran) during the time interval of 1995-2021. These countries experience varying economic complexities and rank below the top 10 countries in terms of CO2 emissions worldwide. The results of the cointegration test indicate the existence of a long-term relationship between the pattern variables. This relationship is estimated in the form of both threshold and non-threshold panel models. The results show that the environmental hypothesis of Kuznets is confirmed in this group of countries. Renewable energy consumption leads to a significant decrease in the ecological footprint, while fossil energy consumption leads to an increase in the ecological footprint. Financial development in the panel panel threshold model significantly reduces the ecological footprint. By increasing the Economic Complexity Index up to a threshold value of 1.12, the ecological footprint increases at a rate of 0.03, and after that, it increases at a rate of 0.08. Panel Non-threshold estimates indicate that as the economic complexity index increases, the ecological footprint initially decreases at very low levels of knowledge and complexity (economic complexity index less than -1.6) and then increases at an accelerating rate. Therefore, in order to achieve sustainable development, increase the level of knowledge and economic complexity, it is recommended that the studied countries utilize environmentally friendly production processes and technologies, transition to renewable energy sources instead of fossil fuels, and foster growth in the financial sector.
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