Sustainable Growth and CO2 Emissions: Quantile Impacts of Complexity, Mobile Subscriptions, and Renewable Energy
摘要
This paper explores the relationships between economic complexity, mobile phone subscriptions, and energy usage on carbon dioxide emissions, in the top 20 CO2 emitting countries. Using the Method of Moments Quantile Regression (MMQR), we find that these relationships differ depending on the level of CO2 emissions. Higher levels of Economic Complexity were associated with lower carbon dioxide emissions (-0.032% to -0.054%), indicating that resource use is more efficient when a country has higher Economic Complexity. The consumption of fossil fuels is found to have a very large potential increase in CO2 emissions (0.926% to 1.002%) and this effect is most pronounced for those countries which have very high levels of emissions. Countries utilizing renewable forms of energy have lower emissions of CO2 (-0.044% to -0.010%) and this is most pronounced at the lower end of the emissions scale. GDP has a positive impact on CO2 emissions (0.666% to 0.754%) but the negative coefficient on GDP squared (-0.035) suggests that there may be an inverted U-shape relationship between GDP and CO2 emissions which supports the EKC (Environmental Kuznets Curve) hypothesis. The moderate positive effect of mobile phone subscriptions on CO2 emissions has been replaced with a negative effect, with the overall range of the coefficients from − 0.012% to 0.006%, across different emission quantiles, suggesting that as access to information becomes more prevalent, people will tend to adopt more sustainable practices. These findings demonstrate that governments can take advantage of digitization and economic diversification as a means to promote sustainable economic growth. To the best of our knowledge, this is one of the first studies to incorporate both Economic Complexity and mobile phone subscriptions into the EKC analysis using the MMQR technique and provide policy-makers with quantile-based results to assist in balancing the two competing objectives of economic growth and environmental sustainability in conditions of high CO2 emissions.