An Asymmetric Nexus between Urbanization and Technological Innovation and Environmental Sustainability in Ethiopia and Egypt: What Is the Role of Renewable Energy?

Cankun Ma and Md. Qamruzzaman
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Cankun Ma: Institute of Chinese Financial Studies, Southwestern University of Finance and Economics, Chengdu 611130, China
Md. Qamruzzaman: School of Business and Economics, United International University, Dhaka 1212, Bangladesh

Sustainability, 2022, vol. 14, issue 13, 1-25

Abstract: The present study investigates the nexus between urbanization, technological innovation, renewable energy consumption, and environmental quality in Egypt and Ethiopia from 1980 to 2020 by employing symmetric and asymmetric frameworks. Referring to symmetric assessment, the coefficient of renewable energy consumption and technological innovation revealed a negative and statistically significant tie with environmental sustainability, valid for both proxies. Study findings suggest that clean energy integration and technological innovations in the economy decrease environmental adversity by reducing carbon emissions and ecological blames. Although the elasticity of urbanization has documented a positive and statistically significant connection with environmental sustainability, the conclusion is valid for both models. Second, in the long run, the asymmetric shocks of renewable energy consumption and technological innovation have exposed a negative and statistically significant tie to environmental sustainability, whereas in the case of urbanization, the asymmetric shocks unveiled a positive and statistically significant association to environmental sustainability. Third, the study revealed that the feedback hypothesis explains the relationship between technological innovation and environmental sustainability [TI←→EF] in Egypt and ecological footprint and urbanization in Egypt and Ethiopia. Moreover, unidirectional causality runs from ecological footprint to renewable energy consumption in Egypt and Ethiopia.

Keywords: environmental sustainability; renewable energy consumption; technological innovation; urbanization; NARDL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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