Analyzing Nexus between Economic Complexity, Renewable Energy, and Environmental Quality in Japan: A New Evidence from QARDL Approach

The economic complexity index is an effective dimensionality reduction tool that applied to forecast and predict future growth, income, environmental quality. Renewable energy plays important role in mitigation of carbon dioxide emissions. This study explores the nexus between complexity, renewable energy, FDI, trade, quality Japan for period 1970Q1-2019Q4. We use (CO2) emissions as dependent variable while (ECI), foreign direct investment (FDI) inflow, (RNE), trade explanatory variables. applies a quantile autoaggressive approach analysis; result this suggests long-run implication ECI, GDP, RNE, CO2 While only RNE show mixed results short run, rest variables do not have short-run implications. implies mostly industrial production activities long run some quantiles run. Japanese government may adopt different measures reduce country, such tax exemption on investment. Furthermore, renewal production, which could achieve sustainable development goal.