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Examining the differences in the impact of climate change on innovation between developed and developing countries: evidence from a panel system GMM analysis

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  • Abdelaziz Hakimi
  • Roula Inglesi-Lotz

Abstract

This article aims to explore the dynamic relationship between innovation and climate changes for a sample of 60 countries. We performed an aggregated analysis in which we use the whole sample (60 countries) and a disaggregated analysis in which we split the sample in developed (36 countries) and developing (24 countries). We estimate a balance panel dynamic System Generalized Method of Moment approach for the period 2008–2014. Findings of the aggregated analysis indicate that for the whole sample, there is a positive response from climate change to innovation. Recent climate changes have a positive impact on the innovation process. The disaggregate analysis shows that for developed countries, there is a positive response from climate changes to innovation only for total CO2 emission and CO2 emission from natural gas. However, there is a negative response from the other CO2 emission towards innovation. For the developing countries, the overall results indicate that there is no significant effect from climate change to innovation. Furthermore, findings indicate also, that the level of growth and research and development expenditure exert a positive effect on innovation process for both aggregate and disaggregate analysis.

Suggested Citation

  • Abdelaziz Hakimi & Roula Inglesi-Lotz, 2020. "Examining the differences in the impact of climate change on innovation between developed and developing countries: evidence from a panel system GMM analysis," Applied Economics, Taylor & Francis Journals, vol. 52(22), pages 2353-2365, May.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2353-2365
    DOI: 10.1080/00036846.2019.1690126
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    Cited by:

    1. Zhang, Jiekuan & Zhang, Yan, 2020. "Tourism and gender equality: An Asian perspective," Annals of Tourism Research, Elsevier, vol. 85(C).
    2. Murthi, Srinivash & Zhang, Wen & Shaturaev, Jakhongir, 2023. "Role of Tourism in Ensuring Gender Equity: An Asian Perspective," MPRA Paper 118486, University Library of Munich, Germany, revised 15 Jun 2023.
    3. Uyar, Ali & Bani-Mustafa, Ahmed & Nimer, Khalil & Schneider, Friedrich & Hasnaoui, Amir, 2021. "Does innovation capacity reduce tax evasion? Moderating effect of intellectual property rights," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. M. Gouveia & R. Inglesi-Lotz, 2021. "Examining the relationship between climate change-related research output and CO2 emissions," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 9069-9111, November.
    5. Oosthuizen, A.M. & Inglesi-Lotz, R., 2022. "The impact of policy priority flexibility on the speed of renewable energy adoption," Renewable Energy, Elsevier, vol. 194(C), pages 426-438.
    6. Bresciani, Stefano & Puertas, Rosa & Ferraris, Alberto & Santoro, Gabriele, 2021. "Innovation, environmental sustainability and economic development: DEA-Bootstrap and multilevel analysis to compare two regions," Technological Forecasting and Social Change, Elsevier, vol. 172(C).

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