Abstract
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.
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The data is provided by corresponding author under reasonable request.
Notes
Table 14 in the appendix provides the complete list of countries.
Although Monte Carlo results show that the properties of the finite sample DOLS estimator are better than those of the FMOLS estimator, we applied the two approaches.
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Ronald Djeunankan: conceptualisation, methodology, data curation, validation, formal analysis, writing-original draft preparation. Henri Njangang: conceptualisation, validation and editing. Honoré Tékam: validation, reviewing and editing.
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Djeunankan, R., Njangang, H. & Tékam, H. How does economic complexity improve energy efficiency? Mechanism discussion and empirical test. Environ Sci Pollut Res 30, 96906–96925 (2023). https://doi.org/10.1007/s11356-023-28920-z
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DOI: https://doi.org/10.1007/s11356-023-28920-z