Innovation Input, Climate Change, and Energy-Environment-Growth Nexus: Evidence from OECD and Non-OECD Countries

Zhuohang Li, Tao Shen (), Yifen Yin and Hsing Hung Chen
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Zhuohang Li: Faculty of Business, City University of Macau, Macao, China
Tao Shen: The Institute for Sustainable Development, Macau University of Science and Technology, Macao, China
Yifen Yin: Faculty of Humanities and Social Science, Macao Polytechnic University, Macao, China
Hsing Hung Chen: Faculty of Business, Macau University of Science and Technology, Macao, China

Energies, 2022, vol. 15, issue 23, 1-19

Abstract: With economic growth and rising incomes, increasing consumption of fossil energy is leading to environmental pollution and climate change, which requires increased innovative inputs to promote the efficiency of renewable energy use. Considering the important impact of innovation input and climate change on renewable energy consumption, greenhouse gas emissions, and green economic growth, this study uses simultaneous equation and sys-GMM model to explore the dynamic nexus of innovation input, climate change, and energy-environment-growth in OECD and non-OECD countries, with panel data covering 2000 to 2019. The empirical results show that renewable energy consumption in non-OECD countries significantly promoted green economic growth, while OECD countries did the opposite. Moreover, renewable energy consumption significantly reduces greenhouse gas emissions caused by climate change, especially for OECD countries. When the level of economic growth exceeds a certain inflection point, greenhouse gas emissions begin to turn from positive to negative, which further verifies the EKC hypothesis. In addition, this study found that innovation input has significantly increased renewable energy consumption, reduced greenhouse gas emissions, and promoted green economic growth in OECD countries. Finally, this study also found that the impact of innovation input in OECD and non-OECD countries on the energy-environment-growth nexus is greater in the short term and more significant in the medium and long term, while the impact of climate change on the energy-environment nexus in OECD and non-OECD countries is more significant in the medium and long term.

Keywords: innovation input; climate change; renewable energy consumption; greenhouse gas emissions; green economic growth; simultaneous equation model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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