Does cyclical innovation in environmental-related technologies make knowledge-based economies carbon neutral?

• Published in: Environmental science and pollution research international Vol. 30; no. 17; pp. 49605 - 49617
• Main Author: Feng, Chuqing
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer Berlin Heidelberg 01.04.2023; Springer Nature B.V
• Subjects: Alternative energy sources; Aquatic Pollution; Atmospheric Protection/Air Quality Control/Air Pollution; Business cycles; Carbon; Carbon Dioxide; Carbon neutrality; Carbon offsets; Earth and Environmental Science; Economic Development; Economic growth; Economic policy; Economics; Ecotoxicology; Energy consumption; Environment; Environmental Chemistry; Environmental Health; Environmental science; GDP; Gross Domestic Product; Innovations; Knowledge; Legislation; Literature reviews; Modernization; Monetary policy; Product development; R&D; Renewable Energy; Renewable resources; Research & development; Research Article; Sustainability; Technology; Waste Water Technology; Water Management; Water Pollution Control; Monetary policy; Knowledge-based economies; Business cycles; Renewable energy consumption; Green innovation; Commercial policy
• ISSN: 1614-7499; 0944-1344; 1614-7499
• DOI: 10.1007/s11356-023-25736-9

The knowledge-based economies have reacted by enacting stringent legislation and encouraging innovation in environmental-related technologies (IERTs) across organizations, such as academic institutions. Although previous research continues to support green innovation as a pro-cyclical concept, the irregular effect of IERT dynamics on CO 2 e in knowledge-based economies has not yet been studied. The paper looks at the cyclical nexus between IERT and CO 2 e in 37 knowledge-based economies using panel data from 1990 to 2019. The augmented mean group supported that an adverse change in IERT contributes to CO 2 e during economic downturns. Second, the findings confirmed that positive dynamics in IERT reduces CO 2 e during economic expansions. Third, the findings signified that trade openness, expansionary commercial policy, gross domestic product per capita, and expansionary monetary policy all increase CO 2 e, while contractionary commercial policy and use of renewable energy all decrease CO 2 e. Overall, the results of this study showed that there is a counter-cyclical association between IERT and CO 2 e. It is suggested that to reduce CO 2 e in knowledge-based economies, the government should support IERT in both economic contraction and expansion periods.