The impact of climate risk on technological progress under the fourth industrial era

Abstract

Identifying the vital role of climate risk in developing technology is significant to promote the Fourth Industrial Revolution. The research utilises the full and sub-sample methodologies to capture the connection of the Southern Oscillation Index (SOI) and technological progress (TP) from the global perspective. In light of the quantitative discussion, we conclude that positive and adverse effects exist of SOI on TP, and the favourable one suggests that the La Nina phenomenon promotes technological progress. However, this opinion cannot be established in the adverse effect of SOI on TP that accompanies the La Nina phenomenon, which is primarily caused by the global financial crisis. Other adverse effects that accompany the El Nino phenomena point out that these climate risks are conducive to developing technology. In turn, the favourable and adverse influences from TP to SOI are accompanied by the El Nino phenomenon and La Nina event respectively, underlining that the development of technology is beneficial for alleviating climate risk. In the context of an increasingly severe climate crisis and a new round of scientific and technological revolution, this article will put forward valuable suggestions to tackle climate risk in the context of the Fourth Industrial Revolution.