Interplay of economic complexity and biological capacity in emerging economies: Carbon vs. energy intensity
Energy Sources, Part B: Economics, Planning and Policy, vol.21, no.1, 2026 (SCI-Expanded, Scopus)
- Publication Type: Article / Article
- Volume: 21 Issue: 1
- Publication Date: 2026
- Doi Number: 10.1080/15567249.2026.2676194
- Journal Name: Energy Sources, Part B: Economics, Planning and Policy
- Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Applied Science & Technology Source, Compendex, Environment Index, Greenfile, INSPEC, Public Affairs Index, Academic Search Ultimate (EBSCO), Engineering Source (EBSCO)
- Keywords: Biological capacity, economic complexity, emerging economies, environmental intensity, trade openness
- Azerbaijan State University of Economics (UNEC) Affiliated: Yes
Abstract
Emerging economies are confronted with the challenge of balancing rising economic complexity with environmental efficiency while restraining anthropogenic emissions. To support the resolution of this challenge, this study explores whether economic complexity limits environmental intensity via the channel of biological capacity between 1995 and 2021 in Emerging 7 (E7) countries, including Brazil, China, India, Indonesia, Mexico, Russia, and Türkiye. These findings support the legitimacy of the EKC hypothesis, confirming an inverted U-shaped relationship between economic growth and environmental intensity. Notably, economic growth escalates environmental intensity in the early growth stages, while in later stages, it gives rise to mitigating environmental intensity in favor of stronger environmental efficiency. Furthermore, economic complexity, financial development, and trade openness have contributed to rising energy and carbon intensity, thereby compromising environmental efficiency. Conversely, globalization and biological capacity improved environmental efficiency by limiting energy and carbon intensity. Regarding moderation effects, biological capacity turns the adverse impact of economic complexity on environmental intensity into a beneficial one. In line with these findings, E7 countries are advised to align rising economic complexity with biological capacity restoration strategies through large-scale forest restoration, sustainable use of land resources, and soil rehabilitation initiatives.