Relationship Between Green Complexity and Carbon Dioxide Emissions: Evidence from Global Panel Data

This study explores the nexus between the recently developed green complexity index, which shows the sophistication of countries to produce green products, and carbon gas emissions. We employ the Augmented Mean Group (AMG) and Mean Group (MG) estimators besides conventional techniques, considering cross-sectional dependency and parameter heterogeneity using a panel for 111 countries over the period 1999-2019. Our findings indicate the presence of an inverse relationship nexus between green complexity and carbon emissions in low and medium-low income countries. However, as income levels rise, this relationship disappears.