This　paper　employs　the　spatial　panel　model　to　explore　the　interaction　between　globalization　and　economic　complexity　on　CO2　emissions.　To　capture　different　potential　mechanisms　of　diffusions,　this　paper　builds　hybrid　W　matrices　based　on　trade　distance　and　geographical　distances.　Further,　to　reduce　small　sample　bias　and　capture　＇true　interactions＇　across　countries,　the　multiple　imputation　algorithm　is　used　to　address　missingness　pattern.　This　approach　can　efficiently　enhance　data　quality　and　inferences　validity.　Furthermore,　to　distinguish　the　spatial　spillover　accurately,　cross-sectional　averages　are　used　to　solve　the　issue　caused　by　the　omission　of　common　factors　or　shocks　that　affect　differently　the　different　spatial　units.　Results　show　that　there　is　a　positive　spatial　spillover　of　CO2　emissions　from　neighboring　countries　to　the　local　country.　Furthermore,　the　results　show　that　globalization　on　its　own　has　no　significant　effect　on　CO2　emissions　in　the　local　country　but　decreases　CO2　emissions　in　neighboring　countries.　More　importantly,　when　taking　economic　complexity　into　account,　high　level　of　economic　complexity　may　decrease　the　negative　indirect　impact　of　globalization　on　carbon　emissions.　The　more　complex　countries　are　to　the　economic　structure,　the　less　is　the　negative　impact　of　globalization　on　carbon　emissions　in　spatially　related　countries.　These　findings　highlight　that　the　role　of　economic　complexity　and　spatial　spillovers　effects　are　imperative　to　be　considered.　Based　on　this　study,　several　policy　recommendations　are　provided.　©　2022　Elsevier　B.V.