Linking financial development, economic growth, and ecological footprint: what is the role of technological innovation?
25 Jun 2021-Environmental Science and Pollution Research (Springer Berlin Heidelberg)-Vol. 28, Iss: 43, pp 61235-61245
TL;DR: In this article, the effects of technological innovation, financial development, and economic growth (GDP) on the ecological footprint (EF) controlling urbanization and employing a STIRPAT framework were investigated.
Abstract: The literature analyzing the ecological impacts of financial development (FD) documents mixed results. In addition, very limited researches consider the role of technological innovation in ecological sustainability even though technological innovation is indispensable to achieve technological advancement, which may help in sustainable development and ecological sustainability. Therefore, this work probes the effects of technological innovation, financial development, and economic growth (GDP) on the ecological footprint (EF) controlling urbanization and employing a STIRPAT framework. The analysis of data from West Asia and Middle East nations from 1990 to 2017 revealed cointegration in the model. The long-run coefficients produced by the continuously updated fully modified technique revealed that a 1% upsurge in technological innovation decreases EF by 0.010%. Interestingly, technological innovation is helpful to decrease EF and enhance economic growth in the West Asia and Middle East (WAME) countries. However, a 1% rise in FD boosts the level of EF by 0.0016% inferring that FD stimulates ecological degradation. Likewise, urbanization in the WAME countries raises EF levels and contributes adversely to ecological quality. In addition to this, the study revealed the environmental Kuznets curve hypothesis in the selected countries accounting for technological innovation, FD, and urbanization in the model. The causal analysis provided evidence of unidirectional causality from FD to EF and bidirectional causality between technological innovation and EF. The study recommends more investment in research and development and strong collaboration between the universities and industries to promote the level of technological innovation for both sustainable development and ecological sustainability. In addition, urban sustainability policies are necessary without decreasing the urbanization level.
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TL;DR: In this article , the authors used the Method of Moments Quantile Regression (MMQR) technique to assess the role of financial globalization and renewable energy consumption on ecological footprint in newly industrialized countries (NICs).
130 citations
TL;DR: In this article, the authors uncover a new perception of the dynamic interconnection between CO2 emission and economic growth, renewable energy use, trade openness, and technological innovation in the Portuguese economy utilizing innovative Morlet wavelet analysis.
Abstract: This paper uncover a new perception of the dynamic interconnection between CO2 emission and economic growth, renewable energy use, trade openness, and technological innovation in the Portuguese economy utilizing innovative Morlet wavelet analysis. The research applied continuous wavelet transform, wavelet correlation, the multiple and partial wavelet coherence, and frequency domain causality analyses are applied on variables of investigation using dataset between 1980 and 2019. The result of these analyses disclosed that the interconnection among the indicators progresses over time and frequency. The present analysis finds notable wavelet coherence and significant lead and lag interconnections in the frequency domain, while conflicting relationships among the variables are found in the time domain. The wavelet analysis according to economic viewpoint affirms that renewable energy consumption helps to curb CO2 while trade openness, technological innovation, and economic growth contribute to CO2. The outcomes also proposed that renewable energy consumption decreases CO2 in medium and long run in Portugal. Therefore, policymakers in Portugal should stimulate investment in renewable energy sources, establish restrictive laws, and enhance energy innovation.
109 citations
TL;DR: In this paper , the authors investigated the impact of financial inclusion on CO 2 and ecological footprint and the moderating role of innovation activity on the association between financial inclusion and environmental degradation.
99 citations
TL;DR: In this paper , the impact of political risk, globalization and technological innovation on the ecological footprint in the BRICS economies by employing a dataset covering the period between 1990 and 2017 and incorporating non-renewable energy utilization and economic growth as other regressors through the utilization of panel quantile regression.
Abstract: ABSTRACT The present study aims to discover the impact of political risk, globalization and technological innovation on the ecological footprint in the BRICS economies by employing a dataset covering the period between 1990 and 2017 and incorporating non-renewable energy utilization and economic growth as other regressors through the utilization of panel quantile regression. The outcomes established that economic growth, non-renewable energy usage, political risk and technological innovation increase ecological footprint. Conversely, globalization significantly decreases the ecological footprint. The panel ordinary least squares approach serves as a sensitivity test for the robustness of the analysis. Furthermore, the Dumitrescu-Hurlin panel causality test confirmed that a bidirectional causal interaction exists between ecological footprint and the regressors of technological innovation, globalization, non-renewable energy and economic growth, while a one-way causal interconnection runs from ecological footprint to political risk. Notably, the general policy suggestion indicates the need for policymakers to intensively coordinate efforts to combat the serious environmental deterioration in the BRICS economies.
67 citations
TL;DR: Wang et al. as discussed by the authors introduced the concept of innovative human capital by developing a new index that measures human capital based on the number of patents every one million R&D staff full-time equivalent.
Abstract: To study the economic and environmental effects of human capital, previous studies measure human capital based on education; however, this approach has many shortcomings because not all educated people are innovative human capital. Hence, this study introduces the concept of innovative human capital by developing a new index that measures human capital based on the number of patents every one million R&D staff full-time equivalent. After this, this paper studies the impact of innovative human capital on CO2 emissions in China. The provincial panel data of 30 Chinese provinces from 2003 to 2017 is analyzed using the fixed effect, ordinary least squares, and the system generalized method of moments (SYS-GMM). The analysis revealed that innovative human capital alleviates environmental deterioration in China. The findings unfold the existence of the environmental Kuznets curve (EKC) considering innovative human capital in the model. It implies that Chinese economic development will eventually support environmental sustainability if China continues to develop its innovative human capital. Among the control variables, economic structure, population density, and energy intensity stimulate environmental degradation by increasing CO2 emissions. However, FDI has a negative relationship with CO2 emissions. Lastly, the study proposes comprehensive policies to increase innovative human capital for environmental sustainability.
65 citations
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Abstract: We examine the reduced-form relationship between per capita income and various environmental indicators. Our study covers four types of indicators: urban air pollution, the state of the oxygen regime in river basins, fecal contamination of ri'ver basins, and contamination of river basins by heavy metals. We find no evidence that environmental quality deteriorates steadily with economic growth. Rather, for most indicators, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement. The turning points for the different pollutants vary, but in most cases they come before a country reaches a per capita income of $8000. I. INTRODUCTION Will continued economic growth bring ever greater harm to the earth's environment? Or do increases in income and wealth sow the seeds for the amelioration of ecological problems? The answers to these questions are critical for the design of appropriate development strategies for lesser developed countries. Exhaustible and renewable natural resources serve as inputs into the production of many goods and services. If the composition of output and the methods of production were immutable, then damage to the environment would be inextricably linked to the scale of global economic activity. But substantial evidence suggests that development gives rise to a structural transformation in what an economy produces (see Syrquin [1989]). And societies have shown remarkable ingenuity in harnessing new technologies to conserve scarce resources. In principle, the forces leading to change in the composition and techniques of production may be sufficiently strong to more than offset the adverse effects of increased economic activity on the environment. In this paper we address this empirical issue using panel data on ambient pollution levels in many countries. Examination of the empirical relationship between national income and measures of environmental quality began with our *We thank the Ford Foundation, the Sloan Foundation, the John S. Guggenheim Memorial Foundation, the Institute for Policy Reform, and the Centers of International Studies and of Economic Policy Studies at Princeton University for financial support. We are grateful to Peter Jaffee, who tutored us on the various dimensions of water quality, to Robert Bisson, who provided us with the GEMS/ Water data, and to seminar participants at the O.E.C.D. Development Centre and the Institute for International Economic Studies in Stockholm, Sweden, who gave us helpful comments and suggestions. Special thanks go to James Laity, whose research assistance was simply extraordinary.
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