The effect of innovation on CO2 emissions of OCED countries from 1990 to 2014

Abstract

Human activities are accelerating CO emissions all over the world most especially in high-income nations, spurring the rise in greenhouse gas emissions. For decades, technologies have been developed and patented in response to the environmental problems. There is an outcry for innovative ways to combat the environmental menace. This attests to the enormity of research being done, in recent years, to investigate how innovation can help mitigate CO emissions. This research aims at investigating into the effect of innovation on CO emissions in 28 OCED countries at an individual level for the recent period 1990 to 2014. The source of data for our utilized variables is the World Bank Indicators. Our study employed three key models based on the STIRPAT model, the economic-EKC growth model, and the innovation-EKC model. The findings of our study revealed that innovation plays a key role towards mitigation of CO emissions in most OECD countries. Its impact, however, varies across the countries, depending on some key factors and channels elucidated in this paper. Additionally, our study asserts that improvement in GDP per capita leads to the rise in CO in most OECD economies, although mitigate emissions in few OECDs; hence, the economic-EKC model is not valid for most economies. Non-renewable energy accelerates emissions whiles renewable energy sources mitigate emissions. Research and development (R&D) improves environmental quality and the EKC for both economic growth and innovation, valid for a few economies of the OECDs. We conclude that innovation is necessary in mitigating CO emissions; hence, governments and policy makers should invest and promote innovative renewable energy sources.

Innovation-driven industrial green development: The moderating role of regional factors

“…A newly developed technology often exacerbates pollution if the original technology is not environmentally friendly. Moreover, there may also be an inverted U-shaped relationship between innovation and environmental impacts (Feng and Yuan, 2016;Mensah et al, 2018). Technological progress may start with a detrimental effect before it begins to exert a positive effect on the environment, similar to the mechanism of the environmental Kuznets curve (Grossman and Krueger, 1991).…”

Toward achieving environmental sustainability target in Organization for Economic Cooperation and Development countries: The role of real income, research and development, and transport infrastructure

“…Therefore, the expected sign of α 4 is positive. Also, R&D has been investigated as a potential factor of CO 2 emissions, and it lowers environmental pollution (Dauda, Long, Mensah, & Salman, ; Mensah, Long, Boamah, Bediako, & Dauda, ).…”

“…Therefore, the expected sign of α 4 is positive. Also, R&D has been investigated as a potential factor of CO 2 emissions, and it lowers environmental pollution (Dauda, Long, Mensah, & Salman, 2019;Mensah, Long, Boamah, Bediako, & Dauda, 2018 (Ahmed, Wang, Mahmood, Hafeez, & Ali, 2019). The transport sector is measure as freight transport, refers to a total number of goods through domestic transport within a given network.…”

Untitled

“…emission as well as the interaction between ICT and GDP diminishes the intensity of pollution. The study by Mensah et al (2018) indicated that innovation (R&D) has a significant positive impact in reducing CO2 emissions in most OECD countries. Additionally, GDP intensifies CO2; in contrast, EKC is not applicable for most economies.…”

“…It indicates that technology is improving environmental quality by reducing CO2 emissions. The investigations conducted by Ang (2009); Sohag et al (2015); Ameer and Munir (2016); Salahuddin et al (2016); Yan et al (2017); Kahouli (2018); Khan et al (2018); Mensah et al (2018); Miao et al (2018); Xu and Lin (2018) revealed that different proxies of technology have a positive effect on environmental quality. Some of the scholars discovered the mixed or negative impact of technology on environmental quality (Choi and Han, 2018;Park et al, 2018).…”