Economic Complexity and Environmental Performance: Evidence from a World Sample

Abstract In this paper, we analyze the relationship between economic complexity and environmental performance using annual data on 88 developed developing countries for period of 2002–2012. We use Economic Complexity Index, which links a country’s productive structure with amount knowledge know-how embodied in goods it produces, Environmental Performance Index as measure performance. show that moving to higher levels leads better overall performance, means sophistication exported products does not induce degradation. Nevertheless, find effect air quality is negative, i.e., exposure PM2.5, CO $$_2$$ 2 , methane nitrous oxide emissions increases, these findings are robust across alternative econometric specifications.