Environmental consequences of technology and industrial agglomeration in emerging economies: Evidence from a MMQREG new approach

Document Type : Original Research

Authors
1 phD student
2 Associate Professor
Abstract
Aggregation and concentration of industries and the production of more complex products due to economies of scale can cause technology spillover. The development of industrial and complex processes requires energy, and the use of energy causes carbon emissions. Now this question arises, what are the effects of technology and industrial agglomeration on the environment? The purpose of this research is to evaluate the effect of economic complexity and industrial agglomeration on carbon emissions in a panel of emerging economies during the period 1990–2022. For this purpose, first, the industrial agglomeration was calculated based on the location entropy index, and then, in the new panel approach, the method of moment quantile regression (MMQREG) was used to investigate the effects of economic complexity and industrial agglomeration on carbon emissions. The results showed that increasing the economic complexity index has different effects on carbon emissions. The results of parameter estimation showed that industrial agglomeration increases carbon emissions in high quantiles. The results show that economic growth and energy consumption increase carbon emissions in all quantiles, and urbanization helps to preserve the environment. The results of Dumitrescu and Hurlin's panel causality test show a two-way relationship between industrial agglomeration and carbon emissions and a one-way relationship between economic complexity and carbon emissions.

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