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The impacts of economic policy uncertainty, energy consumption, sustainable innovation, and quality of governance on green growth in emerging economies

Author

Listed:
  • Dinkneh Gebre Borojo
  • Jiang Yushi
  • Miao Miao
  • Luo Xiao

Abstract

This study investigates the impacts of economic policy uncertainty (EPU), energy consumption (EC), sustainable technological innovation (STI), and quality of governance on green growth (GG). Besides, it examines the moderating effect of STI and governance quality on the association between EPU and GG. It applies a Pooled Mean Group Autoregressive Distributed Lag estimator for 25 emerging economies for periods 1991–2019. For the robustness test, we utilize the asymptotic distribution of the Cross-section Augmented Distributed Lag to control for cross-sectional dependence concerns. We drive two indicators for GG by applying the principal component approach and directional distance function. The findings imply that STI and quality of governance have significant positive impacts on GG. However, EPU and EC adversely impact GG in emerging economies. Besides, quality of governance and STI positively moderate EPU's influence on GG, implying that countries with better quality of governance and promote STI mitigate the detrimental effects of high EPU on GG. Moreover, we run the causality analysis to investigate the causal relationship between target variables and GG. Policy suggestions are proposed based on the results.

Suggested Citation

  • Dinkneh Gebre Borojo & Jiang Yushi & Miao Miao & Luo Xiao, 2024. "The impacts of economic policy uncertainty, energy consumption, sustainable innovation, and quality of governance on green growth in emerging economies," Energy & Environment, , vol. 35(7), pages 3647-3672, November.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:7:p:3647-3672
    DOI: 10.1177/0958305X231173997
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