The role of innovation in environmental-related technologies and institutional quality to drive environmental sustainability
Citation
Shabir, M., Hussain, I., Işık, Ö., Razzaq, K., & Mehroush, I. (2023). The role of innovation in environmental-related technologies and institutional quality to drive environmental sustainability. Frontiers in Environmental Science, 11, 1174827.Abstract
In this study, we examine the long-run effect of environmental-related
technological innovation, institutional quality, trade openness, energy
consumption, and economic growth on CO2 emissions in APEC countries
from 2004 to 2018. Firstly, panel unit root tests were used to explore the
stationarity of each data series. The panel unit root test findings showed that
all data series are stationary at the first difference. Second, the Westerlund panel
cointegration test was used to deal with heterogeneity and cross-sectional
dependence. Thirdly, the empirical findings from the augmented mean group
(AMG) and common correlated effects mean group (CCEMG) estimators indicate
that environmental-related technological innovation and institutional quality
destructively affect CO2 emissions. In contrast, trade openness, energy
consumption, and economic growth positively impact CO2 emissions. While
causality analysis refers to the unidirectional causality runs from trade
openness, energy consumption to CO2 emission and bidirectional causality
relationships are between technological innovation, institutional quality, GDP,
CO2 emission. Based on the findings, we proposed that APEC countries should
raise investment in environmental-related technological innovation and improve
the quality of the institutional environment to achieve sustainable development
targets.