Analysing the role of environment-related technologies and carbon emissions in emerging economies: a step towards sustainable development

Abstract

ABSTRACT The evaluation of the contribution of consumption-based carbon (CBCO2) emissions in greenhouse gas (GHG) emissions is crucially important for the design of sustainable environmental policies. Despite its importance, attention to the discussion of the role of environment-related technologies (ERT) in abating CBCO2 emission is limited. The role of ERT and renewable energy in reducing carbon emissions is investigated in a panel of seven emerging economies during 1990–2016 in the ‘Environment Kuznets Curve (EKC)’ framework. Cross-sectional dependence test, CIPS unit root test, Westerlund co-integration, and cross-sectional augmented autoregressive distributive lag econometric techniques are employed to support the propositions. Findings suggest the supportive role of environment-related technologies in the presence of renewable energy in reducing carbon emissions. However, GDP growth is substantially worsening the environment. The findings indicate the need to increase investment in environment-related technologies by the E-7 economies for a sustainable reduction in CB CO2 emissions.