Export product diversification and CO2 emissions: Contextual evidences from developing and developed economies. (10th December 2020)

• Record Type: Journal Article
• Authors: Shahzad, Umer; Ferraz, Diogo; Doğan, Buhari; Aparecida do Nascimento Rebelatto, Daisy
• Is Part Of: Journal of cleaner production. Volume 276(2020)
• Publication Date: 2020-12-10
• Subjects: Product diversification -- Extensive margin -- Intensive margin -- CO2 emissions -- Developed countries; ARDL Autoregressive Distributed Lag -- ECI Economic Complexity Index -- EKC Environmental Kuznets Curve -- IMF International Monetary Fund -- US United States of America -- FMOLS Fully Modified Ordinary Least Square -- DOLS Dynamic Modified Ordinary Least Square -- OECD Organization for Economic Co-operation and Development -- EEO Emissions-Energy-Output model; F1 -- F12 -- Q56 -- C32; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2020.124146
• Languages: English
• ISSNs: 0959-6526

Abstract

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). Graphical abstract: Image 1 Highlights: This study analyzes 63 countries as global sample for the period from 1971 to 2014. The research work applied product diversification, intensive and extensive margin to understand the CO2 emissions. The paper used Chow test, Fixed effects, and system GMM to analyze the diversification-carbon nexus. The empirical findings suggested negative impacts of product diversification on CO2 emissions. Product diversification, extensive, and intensive margins are strategic tools in developing and developed economies.