Assess the Economic and Environmental Impacts of the Energy Transition in Selected Asian Economies

Kexin Hou () and Muhammad Waqas
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Kexin Hou: Shi Liang School of Law, Changzhou University, Changzhou 213159, China
Muhammad Waqas: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China

Energies, 2024, vol. 17, issue 20, 1-25

Abstract: Energy transition and green innovation have appeared as new hopes for environmental impact due to human activity, which has destroyed biodiversity and increased environmental degradation. Therefore, developed and emerging economies are focusing on green innovation and energy transition to tackle the environmental impact. Thus, this study was initiated to provoke a meaningful relationship between energy transition, economic growth, trade, green innovation, and good governance to measure the role of concerning factors in achieving environmental sustainability. For this objective, dynamic econometric approaches such as cointegration, heteroskedastic OLS estimation using GMM (HOLS-GMM), AMG, and Driscoll–Kraay were implemented to estimate the Asian dataset between 1990 and 2022. The result indicates that concerning factors have a significant influence on environmental impact. The findings specify that a 1% rise in the energy transition and green innovation will influence the environment by 0.0517% and 3.051%, respectively. Further, AMG and Driscoll–Kraay validate the findings of HOLS-GMM. The robust tests indicate that the factors, which are concerning, significantly impact environmental sustainability. Consequently, the energy transition, trade, and green innovation significantly contribute to attaining ecological sustainability in the long term, and the Sustainable Development Theory prevails in the economy. Thus, innovative policy implications, including energy transition, green innovation, trade, and economic growth, are required to make Asia prominent in achieving environmental sustainability via implementing sustainable and green technologies and clean energy sources.

Keywords: energy transition; green innovation; trade; economic growth; Asia (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (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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