Does technological innovation reduce CO2 emissions?Cross-country evidence

Abstract

Based on the data of BP Statistical Review of World Energy, KOF Globalization Index, and the World Development Indicators, this paper explores the impact of technological innovation on CO2 emissions in a panel of 96 countries over the period 1996–2018 with spatial econometric models. First, both CO2 emissions and R&D intensity show significant spatial correlation across countries, and thus spatial econometric models are more suitable for research. Second, technological innovation has no significant mitigation effect on CO2 emissions globally. However, group-based studies show that technological innovation in high-income, high-technology, and high-CO2 emission countries can significantly reduce CO2 emissions in neighboring countries, while R&D intensity in other countries even increase CO2 emissions. Third, the higher the level of globalization is in a country, the more obvious the effect technological innovation has on reducing CO2 emissions. Among them, the moderating effect of political globalization is the most obvious and even low-income, low-technology, and low-CO2 emission countries can benefit from it; the “pollution haven” in economic globalization and the guidance of environmental protection awareness in social globalization deserve more attention. Therefore, countries should pay attention to the spillover effects of technological innovation, improve the corresponding level of globalization according to their own characteristics, and ultimately enhance environmental quality through international cooperation.