How Environmental Policy Stringency, Foreign Direct Investment, and Eco-Innovation Supplement the Energy Transition: New Evidence from NICs

Anam Azam ()
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Anam Azam: Fraunhofer-Institute for Systems and Innovation Research and ISI, 76137 Karlsurhe, Germany

Sustainability, 2024, vol. 16, issue 7, 1-14

Abstract: Several researchers have studied the environmental policy stringency and ecological innovation regarding CO 2 emissions and renewable energy consumption; however, the impact of environmental policy stringency, technological innovation, FDI, and ecological innovation on energy transition has not been studied in the case of NICs. For this purpose, panel quantile regression models are applied in the context of NICs from 2000 to 2021. Our empirical results show that the effect of foreign direct investment is positive and statistically significant on energy transition. On the other hand the variables environmental policy stringency, eco-innovation, and ICT-trade have an inverse effect on energy transition. Therefore, the findings of the study also provide policy implications that indicate NICs need to optimize their trade structure and re-innovate the latest innovation spillovers, and strict environmental policies should be introduced to facilitate energy transition in NICs.

Keywords: energy transition; climate change; innovation; SGDs; ICT-trade (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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