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The Environmental Kuznets Curve revisited: economic complexity and ecological footprint in the most complex economies of the world

Author

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  • Neagu Olimpia

    (“Vasile Goldiș” Western University of Arad, University of Oradea - Doctoral School in Economics)

  • Neagu Mădălin-Ioan

    (Technical University of Cluj Napoca)

Abstract

The paper examines the Environmental Kuznets Curve (EKC) model in the panel of the most complex economies in the world by considering the ecological footprint as an indicator of environmental degradation and economic complexity - as a variable of interest and expression of structural changes in the economy. The study includes the first 48 complex economies in the world, with positive averages of the Economic Complexity Index (ECI) for 1995-2017. The model of cointegrating polynomial regression (CPR) includes also variables with impact on ecological footprints such as globalization, energy intensity and urbanization. The EKC model is validated in the panel of the 48 complex economies, suggesting that these countries have already reached a development stage enabling them to curb the increasing pollution expressed by ecological footprint. Globalization has a mitigating effect while urbanization and energy intensity have an extension effect on ecological footprint. Policy implications are also included.

Suggested Citation

  • Neagu Olimpia & Neagu Mădălin-Ioan, 2022. "The Environmental Kuznets Curve revisited: economic complexity and ecological footprint in the most complex economies of the world," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(1), pages 78-99, March.
    • Handle: RePEc:vrs:suvges:v:32:y:2022:i:1:p:78-99:n:1
    DOI: 10.2478/sues-2022-0005
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    More about this item

    Keywords

    ecological footprint; economic complexity; panel data; EKC;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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