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Does technological innovation bring better air quality?

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  • Zhao, Qian
  • Ding, Longfei
  • Pirtea, Marilen Gabriel
  • Vǎtavu, Sorana

Abstract

This paper analyses the interrelation between technological innovation (TI) and air quality (AQ) using the bootstrap rolling-window subsample Granger test for China. We find that TI has a twofold impact on AQ. On the one hand, TI brings better AQ. This result proves the technique effect, indicating that TI can improve AQ by directly reducing air pollutants emissions and facilitating clean energy use. On the other hand, TI can make AQ worse when TI mainly focuses on utilising fossil fuels to expand production, which proves the scale effect. In turn, AQ can also influence TI; the direction of the influence is dependent on the severity of air pollution and the government’s response. This study provides important policy implications for coordinating innovation and environmental conservation to achieve sustainable development.

Suggested Citation

  • Zhao, Qian & Ding, Longfei & Pirtea, Marilen Gabriel & Vǎtavu, Sorana, 2023. "Does technological innovation bring better air quality?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 978-990.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:978-990
    DOI: 10.1016/j.eap.2023.09.034
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    More about this item

    Keywords

    Technological innovation; Air quality; Rolling-window; Bootstrap;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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