A nexus between the rule of law, green innovation, growth and sustainable environment in top Asian countries: fresh insights from heterogeneous panel estimation

Abstract

The intricacies revolving around Environmental Governance is the prime issue of this century. For this, researchers and practitioners have always strived for viable solutions that are not just efficient in terms of their productivity, but are also innovative in nature, so that they have the least possible repercussions to the ecological wellbeing. Therefore, the present study aims to explore the relevancy of the rule of law and green innovation, while also ascertaining the economic growth among the top Asian countries from 1995 to 2018. Moreover, the relevancy of the Environment Kuznets Curve (EKC) is also validated by the help of the advanced and latest estimation techniques; specifically, the Cross-section augmented autoregressive distributed lags test (CS-ARDL). Based on the findings from the CS-ARDL, the rule of law, and the concept of green innovation have been reported to have a negative association with each other. Additionally, the EKC hypothesis is found to be legitimate and relevant as well. Based on the findings, creating awareness has been recommended for establishing the rule of law. Whereas, more assistance and investments have also been recommended in order to achieve a higher level of Research and Development, which can then enhance the level of green innovation.