Economic complexity and environmental pollution: evidence from the former socialist transition countries

Abstract This study examines the link between economic complexity and environmental pollution by exploiting a massive unprecedented decline of CO 2 emissions in former socialist transition countries after fall iron curtain. We refer to extended theories Environmental Kuznets Curve (EKC), stating that follows an inverted u-shaped course with respect complexity. Using comprehensive data 27 for period 1995–2017, our results show EKC can be found whose rose over time. Additionally, since production-based consumption-based are similar, we discard offshoring as major explaining factor. Consequently, findings suggest more complex products have influenced EKC. However, turning point is associated high levels pollution, estimates imply may even exacerbate issues short middle run less developed countries.