The impact of economic complexity on carbon emissions: evidence from France
2017
This paper reanalyzes the determinants of the CO₂ emissions in France. For this purpose, it considers the unit root test with two structural breaks and a dynamic ordinary least squares estimation. The paper also considers the effects of the energy consumption and the economic complexity on CO₂ emissions. First, it is observed that the EKC hypothesis is valid in France. Second, the positive effect of the energy consumption on CO₂ emissions is obtained. Third, it is observed that a higher economic complexity suppresses the level of CO₂ emissions in the long run. The findings imply noteworthy environmental policy implications to decrease the level of CO₂ emissions in France.
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