The asymmetric effect of technology shocks on CO2 emissions: a panel analysis of BRICS economies

Abstract

Technological innovation positively contributes to economic development in BRICS countries; their environmental consequences cannot be ignored. Thus, it is imperious to explore the impact of technological shocks on environmental quality. We used ARDL and NARDL models to draw empirical consensus on the data set from 1990 to 2019 for BRICS economies. The results of ARDL model reveal that technological shocks positively affect carbon emissions in the long-run and short-run. The findings of NARDL model reveal that positive shocks in technology positively affect carbon emissions in the long-run and short-run, implying that an increase in technological development triggers an increase in carbon emissions. However, the negative shocks in technology have a negative impact on carbon emissions in the long-run, inferring that a reduction in technological development leads to a decrease in carbon emissions. The negative shock in technology has no significant impact on carbon emissions in the short-run. The findings emphasize the importance of environmental-friendly technology to achieving sustainable development goals.

Investigating the asymmetric effects of renewable energy-carbon neutrality nexus: Can technological innovation, trade openness, and transport services deliver the target for Germany?

“…For instance, Adebayo et al 37 reported that TEC intensifies carbon emissions in Portugal. Chen et al 38 also confirmed that the positive shock in TECIN aggravates CO 2 emissions, whereas the negative shock in TECIN mitigates emissions in Brazil, Russia, India, China and South Africa (BRICS) economies. Also, Su et al 39 found that TECIN increases emissions in Brazil.…”

Do environmental taxes, environmental innovation, and energy resources matter for environmental sustainability: Evidence of five sustainable economies

“…The literature investigates the impact of ETEC on CBCO 2 levels across different business cycles, exploring whether it leads to an increase or decrease [ 46 , 51 , 52 ]. These studies have arrived at the consensus that positive shocks to ETEC tend to result in a negative change in CBCO 2 , while adverse shocks to ETEC correspondingly yield a positive change in CBCO 2 .…”

Regional common prosperity level and its spatial relationship with carbon emission intensity in China

“…To prevent omitting important control variables that may bring about endogeneity problems. This paper refers to existing studies to sort out essential control variables that impact carbon emissions and selects industrial structure, urbanization, technological innovation, opening to the outside world, and financial development as controlling factors 37 – 39 . Among them, the logarithm of the ratio of the output of secondary industry to GDP is used to measure industrial structure (ln IS ); urbanization (ln UR ) is expressed as the logarithm of the ratio of urban residents to all people; the logarithm of the number of domestic patent applications issued is used to measure technological innovation (ln TI ); opening to the outside world (ln OU ) is represented by the logarithm of the proportion of total imports and exports to GDP; financial development (ln FD ) is expressed as the logarithm of the amount of deposits and loans made by banking and financial institutions as a percentage of total GDP.…”