Impact of innovation in hybrid electric vehicles-related technologies on carbon dioxide emissions in the 15 most innovative countries

Abstract

This research is motivated by worldwide concern about global warming and its negative environmental effects. Given the significant contribution of the transportation sector to carbon dioxide emissions (CO2e), it is imperative to comprehend the potential of emerging technologies or strategies, including innovations in hybrid electric vehicle-related technologies (IHVRT), in mitigating CO2e. The top 15 countries renowned for their innovation are at the forefront of clean energy and sustainable practices, rendering them ideal for researching the impact of IHVRT on CO2e. This study examines the nexus between IHVRT and CO2e and other related sustainability indicators using the latest data (1990–2020) for the 15 countries with the most innovative global economies. The long- and short-term interactions between IHVRT, public-private partnership investment in energy (PPPIE), renewable energy consumption (RNEC), expansionary fiscal policy (EFP), GDPPC, contractionary fiscal policy (CFP), and CO2e were assessed through a cross-sectional autoregressive distributed lag (CS-ARDL) model. Data analysis supported the favorable long-term impact of IHVRT, RNEC, and PPPIE in reducing emissions in the sampled economies. EFP emerged as a contributing agent of CO2e, while CFP had an inverse relation with CO2e. The current estimations support policy initiatives aimed at prioritizing IHVRT, PPPIE, and RNEC while cautioning against the detrimental environmental repercussions of EFC.