No. 2018-03 - Economic Complexity and the Green Economy

Date: 31 January 2018

This paper studies countries’ productive capabilities relevant to the green economy. We pool all existing environmental goods classifications to create a new, comprehensive dataset of 293 green products traded between 1995 and 2014. We match these products to export data and analyse resulting patterns in the trade network using the economic complexity methodology. We construct the Green Complexity Index (GCI), which ranks countries in accordance with the number and complexity of green products they export competitively and show that countries with higher GCI have higher envi- ronmental patenting rates, lower CO2 emissions, and more stringent envi- ronmental policies. We then look at each country’s Green Adjacent Possible (GAP), which represents the set of technologically proximate green prod- ucts that a country could potentially become competitive in. Using the GAPs, we construct a measure of ...

Alexander Teytelboym Penny Mealy

Complexity Economics Economics of Sustainability

Economics of Sustainability

No. 2018-03 - Economic Complexity and the Green Economy

Type: inet-working-paper

Mealy, P. & Teytelboym, A. (2018). 'Economic Complexity and the Green Economy'. INET Oxford Working Paper No. 2018-03.

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