Research and Development Expenditure & Environmental Sustainability: A Comparative Study for Developed and Developing Nations

Abstract

Research and Development Expenditure (RDE) is one of the critical factors in economic growth that supports innovation, science, and new ideas. RDEs are frequently made toward developing solutions that lower emissions and boost efficiency, resulting in a long-term reduction in carbon dioxide (CO2) emissions. However, a thorough study of its impact on environmental sustainability is scarce and sparse. This paper compares and examines the relationship between expenditure on research and development and carbon dioxide emission, followed by other factors, such as Electricity Consumption and Exports of goods and services for 1996-2020 in developing and developed countries. The findings indicate that RDE and CO2 emissions in developing and developed countries have a negative relationship. As the share of electricity use rises, CO2 emissions will increase in developing and developed nations. However, when considering how exports impact CO2 emissions, developing nations' impacts differ from those of developed countries.