Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies

Muhammad Zubair Chishti () and Avik Sinha

Technology in Society, 2022, vol. 68, issue C

Abstract: The current paper formulates a novel framework to scrutinize the effects of shocks in technological and financial innovation on carbon dioxide emissions (CO2e) in BRICS economies. The Westerlund cointegration test is applied to confirm the long-run association among the constructs. The estimates of second-generation techniques, viz, Augmented Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG), determine the following results. First, the positive shocks from financial innovation significantly disrupt the CO2e, while financial innovation's adverse shocks cause to stimulate pollution. Second, positive shocks in technological innovation also plays a pivotal role in mitigating carbon emissions while the negative shocks exhibit no impact. Third, the process of urbanization exhibits a negative linkage with environmental degradation. Fourth, fossil fuel consumption demonstrates a positive association with CO2e. Lastly, the negative correlation between foreign direct investment-CO2e nexus and GDP per capita squared-CO2e nexus assert the existence of EKC hypothesis, respectively. Also, fully-modified OLS is also deployed for country-level analysis. Besides, the causality test validates the findings by confirming the causal relationship among the modeled variables. Based of the study outcomes, this study has recommended an SDG-oriented policy framework.

Keywords: Financial innovation; Technological innovation; CO2e; FDI; Urbanization; BRICS (search for similar items in EconPapers)
JEL-codes: O31 O33 Q53 Q54 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160791X21003031
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies (2021)
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:teinso:v:68:y:2022:i:c:s0160791x21003031

DOI: 10.1016/j.techsoc.2021.101828

Access Statistics for this article

Technology in Society is currently edited by Charla Griffy-Brown

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