Innovations and the CO2 Emissions Nexus in the MENA Region: A Spatial Analysis

Abstract

Patents support technological innovations in any economy and would also support a clean environment. We investigate the effects of economic growth, patents, industrialization, and urbanization on CO2 emissions in 17 Middle East and North Africa (MENA) economies by applying spatial econometrics. We substantiate the Environment Kuznets Curve (EKC) in the domestic economies and the whole MENA region as per direct and total estimates. Moreover, urbanization increases CO2 emissions in local economies and reduces neighboring nations’ emissions. The total effect of urbanization is found to be insignificant. Industrial value added increases CO2 emissions in domestic and neighboring countries, as well as in the whole MENA region. Patents increase CO2 emissions in domestic economies. However, patents reduce CO2 emissions in neighboring countries and the MENA region. Thus, patents have a pleasant effect on the environment in the whole MENA region. It is suggested that the MENA economies focus more on patents to reduce CO2 emissions. Moreover, urbanization and the industrial sector should be checked to protect the environment.

Does financial inclusion and information communication technology affect environmental degradation in oil-producing countries?

“…The panel modelling results revealed a positive relationship between the human index and environmental quality; nonetheless, they discovered a divergence from the EKC hypothesis, which implies a positive relationship between economic growth and climate degradation. Their findings are consistent with the findings of [ 47 ] covers a subset of African economies where the inverted U-shaped association between per capita income and environmental quality does not occur, providing no evidence for the EKC hypothesis’s validity [ 51 ]. Using a long-run ARDL Co-integration approach, the researchers discovered that human capital reduces CO 2 emissions in Pakistan.…”

“…Over the past few decades, the majority of the work that has been written on the topic of the connection between economic growth and environmental quality has been based on the EKC hypothesis [ 47 ]. According to the EKC theory, the inverted U-shaped curve illustrates the association between economic growth and environmental degradation.…”

The Impact of Entrepreneurship and Education on the Ecological Footprint: Insights from the G-20 States

“…This notable increase in environmental awareness has also led researchers to explore the drivers of environmental impairment globally and in various regions of the world. Empirical studies examining the nexus between economic, institutional, social, legal, and demographic factors and the environment-often proxied by CO 2 emissions, greenhouse gas emissions, and various types of ecological footprints-have identified that factors such as GDP per capita economic growth, sectoral composition, population growth, financial sector development, trade openness, globalization, foreign direct investment inflows, institutions, democratization, economic freedom, human capital development, education, entrepreneurship, innovation, productivity, health expenditures, information and communication technology penetration, renewable and non-renewable energy use, energy intensity, and urbanization play significant roles [3][4][5][6][7][8][9]. This article investigates the impact of entrepreneurial activities and education, along with renewable energy, on the ecological footprint.…”