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Investigating the Effect of Green Productivity and CO2 Emissions Intensity in Developed and Developing CPTPP Countries: An Application of Panel Threshold

Author

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  • Ling, Thong Chien

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia)

  • Arip, Mohammad Affendy Bin

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia)

  • Ling, Thong Ching

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia)

Abstract

Rising CO2 emissions, a major driver of climate change, demand urgent measures to reduce fossil fuel dependence, adopt clean technologies, and promote sustainable development. This study examines the relationship between green productivity and CO2 emissions intensity among CPTPP nations from 2001 to 2021 using panel data and econometric models, including panel Autoregressive Distributed Lag (ARDL) tests, panel Fully Modified Ordinary Least Square analysis (FMOLS), and a panel threshold model. The results reveal a U-shaped relationship, aligning with the Jevons Paradox but diverging from the conventional EKC hypothesis. Specifically, green productivity improvements initially result in higher emissions, but they lead to environmental benefits beyond a certain threshold of technology use. These findings highlight the critical need to balance economic growth with environmental protection through enhanced green productivity. The study also underscores that the effectiveness of the green economy varies across countries, emphasizing the importance of tailoring green economic strategies to the unique conditions of developed and developing nations to achieve a win-win outcome for climate health and economic progress.

Suggested Citation

  • Ling, Thong Chien & Arip, Mohammad Affendy Bin & Ling, Thong Ching, 2025. "Investigating the Effect of Green Productivity and CO2 Emissions Intensity in Developed and Developing CPTPP Countries: An Application of Panel Threshold," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(6), pages 583-594, October.
    • Handle: RePEc:eco:journ2:v:15:y:2025:i:6:id:20547
    DOI: 10.32479/ijeep.20547
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