The role of innovation in environmental-related technologies and institutional quality to drive environmental sustainability

Abstract

In this study, we examine the long-run effect of environmental-related technological innovation, institutional quality, trade openness, energy consumption, and economic growth on CO2 emissions in APEC countries from 2004 to 2018. Firstly, panel unit root tests were used to explore the stationarity of each data series. The panel unit root test findings showed that all data series are stationary at the first difference. Second, the Westerlund panel cointegration test was used to deal with heterogeneity and cross-sectional dependence. Thirdly, the empirical findings from the augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators indicate that environmental-related technological innovation and institutional quality destructively affect CO2 emissions. In contrast, trade openness, energy consumption, and economic growth positively impact CO2 emissions. While causality analysis refers to the unidirectional causality runs from trade openness, energy consumption to CO2 emission and bidirectional causality relationships are between technological innovation, institutional quality, GDP, CO2 emission. Based on the findings, we proposed that APEC countries should raise investment in environmental-related technological innovation and improve the quality of the institutional environment to achieve sustainable development targets.

Linking governance with environmental quality: a global perspective

“…Our results are partially consistent with the findings of Vogel 89 , Bhattarai and Hammig 90 , Ehrhardt-Martinez et al 91 , Cole and Neumayer 92 , Welsch 93 , Esty and Porter 94 , Fan et al 95 , Culas 96 , Newell 97 , Berkman and Young 98 , Bulkeley 99 , Arvin and Lew 100 , Pour 101 , Newell et al 102 , and Jahanger et al 41 , who employed a single dimension and found that governance (institutional quality) has a negative impact on CO 2 emissions. Nevertheless, our findings fully support the outcome of studies conducted by Shabir et al 38 , Wang et al 39 , Sibanda et al 28 , and Xaisongkham and Liu 40 .…”

“…Though the estimated long-run effects obtained from FMOLS and DOLS are slightly different than those obtained from the CS-ARDL model, they hold identical signs. Similar methods of robustness testing are common in the existing literature 38 , 103 .…”

“…As suggested by prior literature (refer 38 , 80 , 81 ), we test the robustness of our estimated outcomes obtained from the computation of Eq. ( 7 ) using the fully modified least squares (FMOLS) and dynamic ordinary least squares (DOLS) techniques.…”

“…However, the effects of good governance on environmental degradation have not been extensively studied, but there are some studies worth reviewing. For instance, Shabir et al 38 investigated the effects of governance, innovative technologies, trade openness, and economic growth on CO 2 emissions in a panel of Asia–Pacific Economic Cooperation (APEC) member countries over the period from 2004 to 2018, using the common correlated effects mean group technique. The authors observed a bidirectional link between governance and CO 2 emissions.…”

Impact on the environment resulting from the incorporation of the "48-Hour Fasting" regimen as a novel dietary practice in the current context of energy, illustrated through the case of Morocco

“…In the subsequent phases, the scienti c community is destined to assume a pivotal role in generating innovative ideas (Sarkar et al, 2022). These ideas are vital to present a varied array of solutions that resonate with individuals, inspiring them to become active participants in the ght against fossil fuels (Shabir et al, 2023). It is acknowledged that the devastating consequences of climate change predominantly affect future generations (Syropoulos & Markowitz, 2021).…”