Adedoyin, Festus FataiÖztürk, İlhanBekun, Festus VictorAgboola, Phillips O.Agboola, Mary Oluwatoyin2023-07-292023-07-2920210960-14811879-0682https://hdl.handle.net/11363/5118https://doi.org/According to the Economic Complexity Index, Japan was the number 1 most complex economy in the world. In addition to complexity, Japan pledges to reduce emissions by boosting cleaner energy sources. This study simulates two policies to highlight a path for Japan in achieving this ambitious energy and environmental target. The novel dynamic autoregressive distribution lag (ARDL) model and Kernel-based regularized least squares (KRLS) are adopted over panel data from 1970 to 2018. Empirical evidence from the ARDL and dynamic ARDL models shows that CO2 emissions have a significant long-term relationship with GDP per capita, renewable energy, and economic complexity index while air transport is significant in the short run. Putting it more elaborately, a unit increase in GDP per capita increase the emission by 0.84%e0.96% in the long run and 0.46%e0.48% in the short run. As regards renewable energy, a unit increase in it decrease the carbon emission by 0.07% and 0.04% in the long-run and short-run respectively. Also, an increase in the economic index diminished the emission by 0.81% in the long run. Moreover, economic complexity moderates the role of GDP in environmental degradation as it also has a significant impact on carbon emission.eninfo:eu-repo/semantics/openAccessAttribution-NonCommercial-NoDerivs 3.0 United StatesEconomic complexitiesCO2 emissionsNovel dynamic ARDLRenewable energyCoal energyJapanArticle1771408142010.1016/j.renene.2021.06.0182-s2.0-85108274318Q1WOS:000683552300006Q1