Economic Complexity, Green Technologies and Environmental Degradation in World’s Top Polluting Countries: Evidence from Advance Panel Estimation

Abstract

The current study empirically probes into the role of economic complexity and green technologies on environmental degradation under STIRPAT framework in world’s top polluting countries over 2000 to 2020 period. To empirically analyze the relationships, Common Correlated Effects Mean Group (CCEMG) estimation technique is used because of the existence of the cross sectional dependence issue in panel data. The findings reveal that economic complexity increases but green technologies decrease CO2 emissions in studied economies. By providing the comprehensive understanding on the relationship between green technologies, economic complexity and CO2 emissions, the present study recommends the governments of the concerned countries to implement relevant policies and practices for improving the production structure and foster the research and development activities to promote the development and use of green technologies to curb CO2 emissions in studied economies.