Relationship Between Economic Complexity, Globalization, Energy Sources and Environmental Sustainability
Relationship Between Economic Complexity, Globalization, Energy Sources and Environmental Sustainability

Summary/Abstract: This study investigates the relationship between economic complexity, globalization, energy consumption patterns, and CO2 emissions in 12 energy-importing emerging economies from 1996 to 2020. Using panel data analysis and the autoregressive distributed lag (ARDL) model, the findings reveal a U-shaped relationship between economic complexity and air pollution, supporting the environmental Kuznets curve (EKC) theory. Renewable energy significantly reduces CO2 emissions in the long term, while fossil fuel use exacerbates environmental degradation. Economic globalization is associated with increased CO2 emissions, contradicting expectations. Short-term results align with long-term findings, highlighting significant country-specific variations. Policy implications emphasize promoting renewable energy adoption and reducing fossil fuel reliance. The research contributes to EKC literature by focusing on energy-importing economies and emphasizes the importance of multidimensional analyses in environmental policy formulation. The study underscores the critical role of renewable energy investment and carbon pricing strategies in mitigating environmental degradation while encouraging sustainable development pathways.

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