Do Public–Private Partnership Investment in Energy and Technological Innovation Matter for Environmental Sustainability in the East Asia and Pacific Region? An Application of a Frequency Domain Causality Test

Tomiwa Adebayo (), Sema Yılmaz Genç, Rui Alexandre Castanho and Dervis Kirikkaleli
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Sema Yılmaz Genç: Department of Marketing and Advertising, Ali Rıza Veziroğlu Vocational School, Kocaeli University, Kocaeli 41780, Turkey
Rui Alexandre Castanho: Faculty of Applied Sciences, WSB University, 41-300 Dąbrowa Górnicza, Poland

Sustainability, 2021, vol. 13, issue 6, 1-15

Abstract: Environmental sustainability is an important issue for current scholars and policymakers in the East Asian and Pacific region. The causal and long-run effects of technological innovation, public–private partnership investment in energy, and renewable energy consumption on environmental sustainability in the East Asian and Pacific regions have not been comprehensively explored while taking into account the role of economic growth using quarterly data for the period 1992–2015. Therefore, the present study aims to close this literature gap using econometric approaches, namely Bayer–Hanck cointegration, autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least square (FMOLS) tests. Furthermore, the study utilizes the frequency domain causality test to capture the causal impact of public–private partnership investment in energy, renewable energy consumption, technological innovation, and economic growth on CO 2 emissions. The advantage of the frequency domain causality test is that it can capture the causality between short-term, medium-term, and long-term variables. The outcomes of the ARDL, FMOLS and DOLS show that renewable energy consumption and technological innovation mitigate CO 2 emissions, while public–private partnership investment in energy and economic growth increase CO 2 emissions. Moreover, the frequency causality test outcomes reveal that technological innovation, public–private partnership investment in energy, and renewable energy consumption cause CO 2 emissions, particularly in the long-term. Thus, as a policy recommendation, the present study recommends promoting renewable energy consumption by focusing more on technological innovation in the East Asia and Pacific regions.

Keywords: environmental sustainability; public–private partnership in energy; renewable energy consumption; economic growth; technological innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:6:p:3039-:d:514612

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