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Econometrics of Anthropogenic Emissions, Green Energy-Based Innovations, and Energy Intensity across OECD Countries

Author

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  • Samuel Asumadu Sarkodie

    (Nord University Business School (HHN), Post Box 1490, 8049 Bodø, Norway)

  • Ahdi Noomen Ajmi

    (Department of Business Administration, College of Science and Humanities in Slayel, Prince Sattam bin Abdulaziz University, Al-Kharj 16278, Saudi Arabia
    ESC de Tunis, Manouba University, Manouba 2010, Tunisia)

  • Festus Fatai Adedoyin

    (Department of Computing and Informatics, Bournemouth University, Poole BH12 5BB, UK)

  • Phebe Asantewaa Owusu

    (Nord University Business School (HHN), Post Box 1490, 8049 Bodø, Norway)

Abstract

The increasing global attention on climate change underscores the importance of alternative energy technologies with emission reduction effects. However, there are several caveats of economic productivity and environmental sustainability tradeoffs that require empirical consideration—owing to long-term effects on climate change. Here, we examine the relationship between emissions, green energy-based innovations, and energy research and development across energy-intensive OECD countries while accounting for industrial structure dynamics. We utilize several novel time series and panel estimation techniques including time-varying causality, defactored instrumental variable-based homogeneous, and heterogeneous slope dynamics that control for unobserved common factors. Our empirical assessment emphasizes the significance of energy research and development in expanding green energy innovations while reducing long-term emissions. Conversely, continual dependence on obsolete energy research and development may worsen environmental sustainability. However, the inclusion of green energy technologies offset environmental pollution without compromising economic productivity. Besides, the mitigation effect of energy research and development is channeled through a decline in energy intensity and technological advancement. We show that green energy-based innovations and energy research and development play a critical role in achieving environmental sustainability in OECD countries.

Suggested Citation

  • Samuel Asumadu Sarkodie & Ahdi Noomen Ajmi & Festus Fatai Adedoyin & Phebe Asantewaa Owusu, 2021. "Econometrics of Anthropogenic Emissions, Green Energy-Based Innovations, and Energy Intensity across OECD Countries," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4118-:d:531678
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    References listed on IDEAS

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    3. Adrian Ioan Felea & Ioan Felea & Calin Radu Hoble, 2023. "Multicriteria Quantification of the Compatibility of the Targets from Romania’s Relevant Strategies with the European Green Deal," Sustainability, MDPI, vol. 15(18), pages 1-14, September.
    4. Li, Yaya & Cobbinah, Joana & Abban, Olivier Joseph & Veglianti, Eleonora, 2023. "Does green manufacturing technology innovation decrease energy intensity for sustainable development?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1010-1025.
    5. Wei Liu & Youfa Sun & Serhat Yüksel & Hasan Dinçer, 2021. "Consensus-based multidimensional due diligence of fintech-enhanced green energy investment projects," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-31, December.

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