The moderating role of green innovation and ecofriendly goods in growth-greenhouse gas Nexus: A new policy dimension

Helen Huifen Cai, Qiong Yuan, Shirley Tang, Quang Nguyen, Jie Dai and Wenxiu Zheng

Energy Economics, 2025, vol. 142, issue C

Abstract: In pursuance of sustainable development goals (SDG 7 and 12), the substantive role of eco-friendly goods and green innovations in mitigating the undesirable effects of natural resources consumption and fossil fuel dependence on the environment in the United Kingdom unveils cutting edge policy options to aspiring eco-friendly goods and green innovation economies. For this purpose, the study used data spanning the period between 1990 and 2022 to explain these connections. Furthermore, nonlinear techniques, including quantile regression and quantile-on-quantile regression, were employed due to the nonlinear nature of the data. The findings reveal that green innovations and eco-friendly goods reduce greenhouse gas (GHG) emissions at lower levels but exhibit diminishing returns at higher levels. Human capital also reduces emissions at lower levels but shows a more complex relationship as it increases. Trade openness initially raises emissions but later contributes to reductions, likely due to technology transfers. Green energy consumption has a stronger impact in reducing emissions as it increases, though the effect tapers off at very high levels. Economic growth, on the other hand, consistently increases emissions, with stronger effects at both low and high levels of growth. Policy makers should therefore target early-stage green innovations and green goods to achieve the greatest degree of emission reduction reductions in light of the concept of diminishing returns. To enhance emissions reduction, greater level of trade openness and green energy consumption should be attained but still properly address the consequences of greater economic growth.

Keywords: Eco-friendly goods; Green innovations; Green energy consumption; Human capital; Economic growth; Greenhouse gas emissions (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988325000131
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988325000131

DOI: 10.1016/j.eneco.2025.108190

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().