The effect of import product diversification on carbon emissions: New evidence for sustainable economic policies

Guoheng Hu, Muhlis Can, Sudharshan Reddy Paramati (Lead / Corresponding author), Buhari Doğan, Jianchun Fang (Lead / Corresponding author)

Research output: Contribution to journalArticle


This study examines the effect of import product diversification and renewable energy consumption on CO2 emissions across a panel of 35 developed and 93 developing economies. The empirical models utilize an environmental theoretical framework and yearly data for 1995–2014. The study makes use of common correlated effects—specifically mean group (CCE-MG) and augmented mean group (AMG) estimators. The overall results suggest that import product diversification has a substantial negative and positive impact on the carbon emissions of developed and developing economies, respectively. This study also finds that increasing renewable energy consumption helps to meet climate change targets by reducing carbon emissions. Thus, import product diversification and renewable energy could play an indispensable role in reducing carbon emissions in developed economies; while renewable energy is the only factor that assists developing economies meet their emission reduction targets at this stage.

Original languageEnglish
Pages (from-to)198-210
Number of pages13
JournalEconomic Analysis and Policy
Early online date22 Jan 2020
Publication statusPublished - Mar 2020



  • Import product diversification
  • Renewable energy
  • Carbon emissions
  • AMG estimator

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