Innovations, energy consumption and carbon dioxide emissions in the global world countries: An empirical investigation

Abstract

Technological innovations are the important sources of economic growth of a country and it is inter associated with other factors such as energy consumption, economic growth and carbon dioxide emission. A change in these factors affect the capability of technological innovation and thus the effect of these factors on innovations need to be explored. This study investigates the effect of carbon dioxide, energy consumption and economic growth on innovations proxies by different innovations indicators. The sample data is collected from 1980 to 2019 of the world 181 countries and OLS, fixed effect, two step Generalized method of moments and panel quantile regression models were employed for data analysis. The results reveal that carbon dioxide and economic growth increase technological innovations while the inflow of FDI decrease innovations output. Energy consumption also negatively affects innovation indicators except for research and development. In the case of quantile regression, energy consumption is positive while carbon dioxide and foreign direct investment are negative across different quantiles for research and development. Energy consumption and foreign direct investment reduce technological innovations proxy by patent application residents while carbon dioxide and economic growth increase it. The findings of this study have considerable policy suggestions for the global countries.

Nexus of Innovation, Renewable Consumption, FDI inflows, Economic Growth and CO2 Emission in The Technology Revolution 4.0 for Sustainability Economy—The Case of Vietnam

“…The positive nexus found between innovations and environmental pollution in Vietnam represents a new contribution of this research. This study's empirical findings opposite results of Khan et al [1]. In future studies, Vietnam should be compared to other nations with respect to green energy, FDI inflows, economic growth, innovations and carbon dioxide (CO2) emissions.…”

“…Using empirical research, Khan et al examined innovation ability, green electricity use, and CO2 emissions in African countries [1]. Moreover, Nguyen studied Vietnam's export of goods and services and CO2 emissions.…”

“…For example, new technologies can make production processes more efficient, reduce waste, and op-timize energy use. In addition, innovations in transportation can help reduce emissions by increasing the efficiency of vehicles and encouraging the use of low-emission alternatives like electric cars or public transportation [1].…”

“…However, innovation can be slowed down by a lack of investment and political will. Therefore, it is important for governments, businesses, and individuals to invest in research and development, promote innovation-friendly policies, and create an environment that encourages innovation [1][2][3].…”

Determinants of the renewable energy consumption: The case of Asian countries

“…Khan et al focus on the Innovations, Energy Consumption and CO 2 Emissions in the Global World Countries: An Empirical Investigation [ 32 ]. The study show the relationship between energy consumption, innovations and CO 2 emission in the global economy.…”