This study examines the extent to which sectoral composition can affect green technology innovations in 20 selected Asia’s Middle-Income countries from 1995 until 2016. To measure the cross-sectional dependence among cross-sectional units and allows heterogeneous coefficients in a panel, this study will adopt the Dynamic Common Correlated Effect (DCCE). The results show that an increase in the proportion of industry and services sectors plays an important role in innovations of environmentally friendly technology. It is also knowing that the tourism sector and pollution level would be a prospect for green technology innovations. On the contrary, the increasing proportion of the agriculture sector may hinder green innovations. The finding of this study can be helpful for policymakers in middle-Income countries to promote a balance of green technology development in each sector for the sake of comprehensive sustainable development.

Purpose This paper aims to examine the dynamic relationship among energy efficiency, health expenditure and economic growth in Malaysia over the sample period of 1980–2016. Design/methodology/approach This study uses autoregressive distributed lag cointegration analysis and the causality approach by the vector error correction model to analyse the relationship among energy efficiency, which is proxied by energy intensity and the determinant factors. Findings The findings of this paper suggest long-run cointegration causal links between economic growth and health expenditure. However, a mixed conclusion for both determinants exists: an increase in real income contributes to more efficient use of energy sources, whereas an increase in government spending on health intensifies energy usage. Originality/value Most previous relevant research has focussed on energy efficiency as measured by economic intensity and economic growth and do not relate to the issue of health expenditure. The recent health catastrophe brought on by the COVID-19 epidemic emphasises the significance of allocating more resources to health care. The findings will be helpful in the development of energy efficiency and economic policies in pursuit of sustainable development goals.