Evaluating the role of innovation in hybrid electric vehicle-related technologies to promote environmental sustainability in knowledge-based economies

Abstract

Knowledge-based economies (KBEs) are the most technologically-advanced industrialized economies in the world. Despite impressive renewable energy consumption (RNEC), economic development, and high gross domestic product per capita (GDPPC) records, weather patterns in these economies have worsened, causing serious concerns among the government and masses. Recognizing innovation in hybrid electrical vehicle-related technologies (IHEVRTs) as an essential tool for combating surging environmental damage, the KBEs have dedicated enormous financial resources towards novel ecological technologies associated with hybrid electric vehicles over the past two decades. The existing literature reflects a lack of theoretical and empirical information on whether IHEVRTs reduce carbon dioxide emissions (CO2e) in these economies. This work empirically explores the influence of expansionary monetary policy (EPMP), IHEVRTs, trade openness (TRDOPS), natural resources (NRs), contractionary monetary policy (CNMP), RNEC, GDPPC, contractionary commercial policy (CNCP), and CO2e in the KBEs for the period between 1990 and 2020. The findings signified that IHEVRTs, RNEC, CNMP, and CNCP reduced CO2e levels, while EPMP, NRs, TRDOPS, EPCP, and GDPPC raised CO2e levels. Ultimately, we suggest that KBEs should promote the utilization of hybrid electric vehicles, enhance green R&D spending, employ clean technology in natural resource extraction, and enact green monetary and commercial policies.