Demystifying the links between green technology innovation, economic growth, and environmental tax in ASEAN-6 countries: The dynamic role of green energy and green investment

Abstract

Green investment and technological advances are often regarded as efficient tools for carbon neutralization since they improve clean output and energy efficiency. To this end, this study aims to investigate the impact of renewable energy supply, green energy investment, environmental tax, and economic growth on green technology innovation in selected six Association of Southeast Asian Nations (ASEAN-6) countries over the period of 1995–2018. Thus, present study employed the advanced panel approach which provides robust results under cross-sectional dependency and slope heterogeneity. Specifically, the long-run relationship is investigated by using Westerlund and Edgerton (2008) cointegration test, and the long and short-run estimations are analyzed with a robust CS-ARDL method. The empirical findings for both the long-run and short-run show that the impacts of green energy and green investment on green technology innovation are positive, yet stronger in the long run. Moreover, the results also confirm the positive effects of economic growth and environmental taxes on green technology innovation. Furthermore, the Augmented mean group (AMG) results are in line with the estimates of CS-ARDL analysis. To accelerate green technology innovation in ASEAN-6 countries, incorporating the regulatory policies fostering a continuous increase in the share of renewable energy supply and investments into the agenda of environmental technological progress is crucial.