From economic growth to inclusive green growth: How do carbon emissions, eco-innovation and international collaboration develop economic growth and tackle climate change?

Abstract

The climate crisis is recognized as one of the world's most serious concerns, posing a threat to environmental, social, and economic growth. However, previous work has failed to address the dynamic effects through which economic growth may affect green growth and climate crisis. In this research, we take a closer look at the impact of carbon emissions, eco-innovation adoption, and international collaboration on economic growth and the influence of economic growth on green growth. This paper used the generalized method of moments (GMM) for 54 African countries from 2010 to 2019, allied with an imbalanced panel of 540 observations. This paper finds a positive relationship between carbon emissions, eco-innovation international cooperation, and economic growth with p-values lower than 0.047. Our study discovers economic growth's robust and positive impact on green growth with a p-value of 0.009. This research finds a three-pronged mediating effect of economic growth between its driving factors and green growth. Lastly, this paper furnishes new visions into the argument over economic growth versus green growth. It informs policymakers of the need to pay attention to the growing effect of eco-innovation driving factors on attaining sustainable and greener growth and climate crisis mitigation.