Dynamics between green innovation and environmental quality: new insights into South Asian economies

Jun Wen (), Waheed Ali (), Jamal Hussain (), Nadeem Khan (), Hadi Hussain (), Najabat Ali and Rizwan Akhtar ()
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Jun Wen: Xi’an Jiaotong University
Waheed Ali: Xi’an Jiaotong University
Jamal Hussain: Karakoram International University
Hadi Hussain: Xi’an Jiaotong University
Rizwan Akhtar: Karakoram International University

Economia Politica: Journal of Analytical and Institutional Economics, 2022, vol. 39, issue 2, No 8, 543-565

Abstract: Abstract Recently, numerous studies have analyzed the relationship between economic growth, energy consumption and CO2 emissions. However, only a few studies have examined the effect of green innovation on environmental quality; among them, none has investigated the same issue in South Asian countries. Thus, this study aims to empirically analyze the relationship between green innovations and environmental quality in South Asian economies. This study uses the panel data set for five South Asian developing economies over the period 1990–2014. We employ a fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) to check the long-run relationship among variables. Moreover, we utilize the panel co-integration tests to confirm the relationship among variables. The findings of this research indicate that green innovation significantly improves environmental quality in South Asia. The outcomes of this study will offer better policy options to policymakers for environmental sustainability through green innovation in South Asia.

Keywords: Environmental quality; Green innovation; South Asia; FMOLS; DOLS (search for similar items in EconPapers)
JEL-codes: O3 O32 O33 Q5 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s40888-021-00248-2

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