Traversing Innovation and Environmental Sustainability Nexus: Mediating Role of Energy Forms in High Energy Economies

Raheela Mehboob, Salma Bibi and Misbah Aslam
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Raheela Mehboob: International Islamic University Islamabad
Salma Bibi: International Islamic University Islamabad
Misbah Aslam: International Islamic University Islamabad

Journal of Economic Sciences, 2025, vol. 4, issue 1, 117-146

Abstract: The concerns about environmental degradation are exacerbated by hikes in energy consumption. The innovations amplification effect the environment while energy sources effect both negatively. This study investigates the detrimental role of energy forms (mediation Effects) in technological innovation and the environmental nexus. The research uses a sample of 23 economies with the highest energy consumption globally from 1990 to 2020. The seemingly unrelated regression (SUR) model has been used to explore the innovation and environment nexus. The study shows both positive and negative mediating effects of non-renewable and renewable energy use. Additionally, it highlights a simultaneously adverse direct impact of innovation on the environment, adding to a more complex comprehension of the complex relationship between ecological sustainability and technological advancement. The findings emphasize the significance of considering various routes of influence while evaluating the environmental implications of technological advancement. The findings of the study provide evidence for the emphasis of technical innovation in improving environmental performance. Further, it emphasizes the significance of renewable energy usage in mitigating environmental degradation. Policymakers should provide incentives to research and development in technical innovations. However, giving priority and subsidy for the adoption of renewable energy sources can help enhance environmental performance and mitigate environmental degradation.

Keywords: Mediation Effects; SUR Model; Technological Advancement; Environmental Degradation (search for similar items in EconPapers)
JEL-codes: O31 Q43 Q55 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:azm:journl:v:4:y:2025:i:1:p:117-146

DOI: 10.55603/jes.v4i1.a8

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