The effect of global collaboration on climate mitigation technologies in reducing CO2

Abstract

The fundamental approaches to industrial growth, government interventions, and market structure have ignored the main consequences of the common idea of “growth first, clean later”. This study investigates the relationship between carbon emissions (CO2) and international collaboration in climate change mitigation technologies (ICCCMT), renewable energy consumption (REC), exports (EXP), imports (IMP), gross domestic product (GDP), foreign direct investment (FDI), natural resources rents (NRR), and domestic innovation in climate change mitigation technologies (DICCMT) for a panel of the Organization for Economic Cooperation and Development (OECD) countries over the period of 1990-2020. We adopted a series of econometric techniques for the visualization of the available data. We used second-generation econometrics estimations to verify cross-sectional dependence, co-integration, and stationary between the variables.Based on our findings, the study reveals that ICCCMT, REC, and DICCMT have a positive effect and contribute to CO2 mitigation of the 30 OECD economies. Furthermore, the findings reveal that ICCCMT can promote renewable energy consumption, thus the increase of REC will significantly mitigate CO2 emissions. The outcomes from the panel dynamic GMM model confirmed a positive relationship between CO2 emissions, FDI, exports, imports, and GDP. The study indicates that these variables can adversely affect climate change mitigation.