How does green technology innovation affect green growth in ASEAN-6 countries? Evidence from advance panel estimations

Abstract

The ASEAN region is still majorly dependent on non-renewable sources, which emit more greenhouse emissions and are ranked as 3rd biggest emitter of greenhouse gases. Therefore the objective of the present study is to understand the role of green technology innovation and its effect on green growth. For said purpose, after accounting for the heterogeneity of the slope, cross section dependence, stationarity and cointegration on the dataset having yearly observations from 1992 to 2018, the application of CS-ARDL was made known for generating robust and consistent results by addressing the aforementioned statistical biases. The findings of CS-ARDL revealed that the relationship between technology innovation and renewable energy with carbon emissions and production-based carbon emissions was found to be negative. In contrast, non-renewable energy has a positive impact on carbon emissions and production-based carbon emissions. Moreover, the results were also validated by the AMG and CCEMG for both criterion variables, which are carbon emissions and production-based carbon emissions. Based on the findings, it is suggested that there is a need to channelize the research and development in order to improve the number of technological patents which help in controlling environmental degradation. The results and recommendations are discussed in further detail, where directions for future researchers are also proposed.