Effect of structural economic transformation on the environment: Insights on transition from goods-based to service-based economies in OECD countries.

Over the past century, the shift from a goods-based to a service-based economy has been profound, especially in developed nations. This paper examines the impact of this transition on CO2 emissions. Using panel data econometric models with fixed and random effects for 23 OECD countries from 1990 to 2022, this study estimates the impact of Cost Disease as an indicator of this transformation on CO2 emissions.