Export product diversification and CO2 emissions: Contextual evidences from developing and developed economies

By Umer Shahzad, Diogo Ferraz, Buhari Doğan, Daisy Aparecida do Nascimento Rebelatto. 2020

207 citations recorded by the source corpus.

Abstract Ascertaining cleaner production and sustainability is a major issue in the developed and developing world; income and international trade are the predominant factors behind this. This article explores the heterogeneous impacts of export product diversification, extensive margin, and intensive margins on the CO2 emissions for developing and developed countries. To this end, the authors analyze the annual data of variables from 1971 to 2014 and employ unrestricted fixed effects and system GMM to solve the research problem. The empirics suggest that all three indicators of export diversification significantly reduce CO2 emissions in 63 developed and developing countries as a global sample. The fixed effect models reveal that product diversification and intensive margin have a negative and significant impact in developed economies. The negative impacts of product diversification show that economic sophistication is an important tool to reduce emissions. Further, the Chow test proved the statistical difference between developed and developing economies, which contributes to policy recommendations. Based on the empirical outcomes, the study suggests innovative policies for cleaner production and industrial manufacturing purposes, making the policies more effective in achieving Sustainable Development Goals (SDGs).

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/16d262b829d108257f5c7e7aac4306cbdc9d9d7f

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Citations in the corpus

Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies (2021, unknown): “To overcome the dilemma of the economic development and environmental protection, the environmental regulation is considered an adequate tool in realizing the social welfare (Shahzad et al., 2020; Shahzad, Fareed et al., 2021; Wang & Zhang, 2015).”
Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries (2020, background): “2020 [28], based on the incentive theory, consist of a combination of penalties and gratuities: each polluter pays a tax or receives a subsidy according to the overall performance.”
The roles of export diversification and composite country risks in carbon emissions abatement: evidence from the signatories of the regional comprehensive economic partnership agreement (2021, background): “exports diversification) can affect CO2 emissions (e.g. Can, Dogan, and Saboori 2020; Gozgor and Can 2016; Liu et al. 2018; Liu, Kim, and Choe 2019; Mania 2020; Shahzad et al. 2020).”