Pathway towards Sustainability in Selected Asian Countries: Influence of Green Investment, Technology Innovations, and Economic Growth on CO2 Emission

Rundong Luo,Kishwar Ali,Sami Ullah

doi:10.3390/su132212873

Rundong Luo, Kishwar Ali + Show 1 more

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https://doi.org/10.3390/su132212873

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Journal: Sustainability	Publication Date: Nov 21, 2021
Citations: 51	License type: CC BY 4.0

Affiliation: Jiangsu University, Shandong University

Abstract

Green investment and technology innovations are generally considered as an effective factor to mitigate CO2 emissions as these enhance cleaner production and energy efficacy. Thus, this study investigated the influence of green investment, technology innovations, and economic growth on CO2 emissions in selected Asian countries for the period 2001 to 2019. The Cross-Section dependency (CSD) signified the cross-section dependence in the panel countries, whereas CIPS and CADF testing affirmed the stationarity of all variables at the first difference. Consequently, the Westerlund cointegration method recognized a long-term association among variables. The outcomes of Panel Fully Modified OLS and Panel Dynamic OLS results indicated that green investment and technology innovations are helpful in mitigating CO2 emissions in selected Asian countries. In addition, the Environmental Kuznets Curve (EKC) postulate is validated for the given time period and indicated inverted U-shaped linkages between the economic growth and CO2 emission. The outcomes of the remaining variables, including population growth, energy consumption, FDI inflow, and trade, are estimated to have an augmenting influence on CO2 emission. Our results regarding the FDI–CO2 emissions nexus support the presence of the pollution-haven hypothesis. Moreover, the estimated results from PFMOLS and PDOLS are validated by Granger Causality, and AMG and CCEMG tests. The study suggests the adoption of renewable sources as energy input and the promotion of innovations for energy efficiencies to reduce CO2 emissions in Asian economies.

Highlights

Published: 21 November 2021Global warming is seen as a serious threat to the global environment, according to growing sentiment across nations throughout the world
Panel Fully Modified Ordinary Least Square (PFMOLS) and PDOLS results provided in Table 4 revealed that a 1% increase in technology innovations (TIN) was estimated to reduce CO2 emissions by 0.14635% and 0.28375%, respectively, by PFMOLS and PDOLS estimates
For selected Asian economies, a 1% increase in trade (TRD) was found to enhance CO2 emissions by 0.14376% and 0.16861% as revealed by PFMOLS and PDOLS outcomes, respectively

Summary

Introduction

Global warming is seen as a serious threat to the global environment, according to growing sentiment across nations throughout the world. Most individuals believe that human emissions of hazardous gases such as carbon dioxide (CO2) are the primary reason for the rise in global temperatures that are hurting humans and the natural environment [1,2]. As the detrimental effects of environmental harm, such as climate change and global warming, became more apparent on a worldwide scale, governments began to seek a common approach, and several discussions on environmental sustainability were organized on both national and international forums. Emissions have risen to 413 parts per million, the most in 650,000 years. Concerning such environmental damages, actions such as the Paris Agreement (2016)

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