Can innovation shocks determine CO2 emissions (CO2e) in the OECD economies? A new perspective

Bibliographic Data

ID23318586
AuthorsManzoor Ahmad (0000-0002-1152-2096, Nanjing University), Zeeshan Khan (0000-0003-1374-0836, Tsinghua University), Zia Ur Rahman (0000-0002-3985-2679, Research School for Southeast Asian Studies, Xiamen University, Xiamen, People’s Republic of China), Shoukat Iqbal Khattak (0000-0002-1348-4169, Jimei University, corresponding author), Zia Ullah Khan (0000-0001-8663-0545, School of Business Administration, Department of Industrial Economics, Southwestern University of Finance & Economics, Chengdu, People’s Republic of China)
Year2021
Volume30
Issue1
Pages89-109
Publication date2021-01-02
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomics of Innovation and New Technology (JOURNAL)
Journal identifiersISSN: 1043-8599 • E-ISSN: 1476-8364
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/10438599.2019.1684643
OpenAlexW2987420102
LanguageEN
Citations received67
References cited91

This study has attempted to address prior knowledge gaps in the environmental economics literature by integrating the innovation shocks into the Environment Kuznets Curve (EKC) equation for twenty-six OECD economies using data from 1990 to 2014. Foreign direct investment (FDI), exports (EXP), renewable energy consumption (REC), and GDP per capita were included as control variables. The results from multiple empirical analyses indicated that positive shocks to innovation improve, but the negative shocks disrupt environmental quality. Data analyses also showed that a positive correlation exists between income per capita of OECD economies. From the negative coefficient of income per capita (squared) and the existence of a negative nexus between FDI and CO2e, both the EKC and the Pollution Halo Hypothesis (PHH) were confirmed in sampled economies, respectively. The paper offers empirical support for the favourable impacts of REC on the quality of the environment and calls for the adoption of innovation shocks as a policy instrument to formulate better environmental policies for a sustainable future.

Econometrics · Economics · Environmental quality · Foreign direct investment · Kuznets Curve · Macroeconomics · Nexus (standard) · Per capita · Per capita income · Climate Change Policy and Economics · Energy, Environment, Economic Growth · Environmental Impact and Sustainability