Do green technology innovations promote green growth? Empirical evidence from MENA countries

Kaouthar Gazdar

Article ID: 4320
Vol 8, Issue 7, 2024


Abstract


The MENA region, known for its significant oil and gas production, has been widely acknowledged for its reliance on fossil fuels. The dependence on fossil fuels has led to significant environmental pollution. Therefore, the shift towards a more environmentally friendly and enduring future is crucial. Thus, the current study tries to investigate the effect of green technology innovations on green growth in MENA region. Specifically, we examine whether the effect of green technology innovations on green growth depend on the threshold level of income. To this end, a panel threshold model is estimated for a sample of 10 MENA countries over the period 1998–2022. Our main findings show that only countries with income level beyond the threshold can benefit significantly from green technology innovations in term of green growth. Nevertheless, our findings indicate a substantial and adverse impact of green technology innovation on countries where income levels fall below the specified threshold.


Keywords


green growth; green technology innovations; income; panel threshold model; MENA countries

Full Text:

PDF


References


Abid, N., Ceci, F., & Ikram, M. (2022). Green growth and sustainable development: dynamic linkage between technological innovation, ISO 14001, and environmental challenges. Environmental Science and Pollution Research, 29(17), 25428–25447. https://doi.org/10.1007/s11356-021-17518-y

Ahmed, F., Kousar, S., Pervaiz, A., et al. (2022). Role of green innovation, trade and energy to promote green economic growth: a case of South Asian Nations. Environmental Science and Pollution Research, 29(5), 6871–6885. https://doi.org/10.1007/s11356-021-15881-4

Albaker, A., Abbasi, K. R., Haddad, A. M., et al. (2023). Analyzing the Impact of Renewable Energy and Green Innovation on Carbon Emissions in the MENA Region. Energies, 16(16), 6053. https://doi.org/10.3390/en16166053

Chen, L., Hu, Y., Wang, R., et al. (2023). Green building practices to integrate renewable energy in the construction sector: a review. Environmental Chemistry Letters, 22(2), 751–784. https://doi.org/10.1007/s10311-023-01675-2

Chen, R., Ramzan, M., Hafeez, M., et al. (2023). Green innovation-green growth nexus in BRICS: Does financial globalization matter? Journal of Innovation & Knowledge, 8(1), 100286. https://doi.org/10.1016/j.jik.2022.100286

Danish, & Ulucak, R. (2020). How do environmental technologies affect green growth? Evidence from BRICS economies. Science of The Total Environment, 712, 136504. https://doi.org/10.1016/j.scitotenv.2020.136504

Du, K., Li, P., & Yan, Z. (2019). Do green technology innovations contribute to carbon dioxide emission reduction? Empirical evidence from patent data. Technological Forecasting and Social Change, 146, 297–303. https://doi.org/10.1016/j.techfore.2019.06.010

Ghisetti, C., & Quatraro, F. (2017). Green Technologies and Environmental Productivity: A Cross-sectoral Analysis of Direct and Indirect Effects in Italian Regions. Ecological Economics, 132, 1–13. https://doi.org/10.1016/j.ecolecon.2016.10.003

Guo, L. ling, Qu, Y., & Tseng, M. L. (2017). The interaction effects of environmental regulation and technological innovation on regional green growth performance. Journal of Cleaner Production, 162, 894–902. https://doi.org/10.1016/j.jclepro.2017.05.210

Hansen, B. E. (1999). Threshold Effects in Non-Dynamic Panels: Estimation, Testing, and Inference. Journal of Econometrics, 93(2), 345–368. https://doi.org/10.1016/S0304-4076(99)00025-1

Huang, J. (2024). Resources, innovation, globalization, and green growth: The BRICS financial development strategy. Geoscience Frontiers, 15(2), 101741. https://doi.org/10.1016/j.gsf.2023.101741

Klewitz, J., & Hansen, E. G. (2014). Sustainability-oriented innovation of SMEs: a systematic review. Journal of Cleaner Production, 65, 57–75. https://doi.org/10.1016/j.jclepro.2013.07.017

Lan, J., Kakinaka, M., & Huang, X. (2012). Foreign Direct Investment, Human Capital and Environmental Pollution in China. Environmental and Resource Economics, 51(2), 255–275. https://doi.org/10.1007/s10640-011-9498-2

Li, J., Dong, K., & Dong, X. (2022). Green energy as a new determinant of green growth in China: The role of green technological innovation. Energy Economics, 114, 106260. https://doi.org/10.1016/j.eneco.2022.106260

Liu, H., & Liang, D. (2013). A review of clean energy innovation and technology transfer in China. Renewable and Sustainable Energy Reviews, 18, 486–498. https://doi.org/10.1016/j.rser.2012.10.041

Mensah, C. N., Long, X., Dauda, L., et al. (2019). Technological innovation and green growth in the Organization for Economic Cooperation and Development economies. Journal of Cleaner Production, 240, 118204. https://doi.org/10.1016/j.jclepro.2019.118204

Md Murad, W., Alam, Md. M., Noman, A. H. Md., et al. (2019). Dynamics of technological innovation, energy consumption, energy price and economic growth in Denmark. Environmental Progress & Sustainable Energy, 38(1), 22–29. https://doi.org/10.1002/ep.12905

Popp, D. (2010). Innovation and Climate Policy. Annual Review of Resource Economics, 2(1), 275–298. https://doi.org/10.1146/annurev.resource.012809.103929

Raharjo, K. (2018). The role of green management in creating sustainability performance on the small and medium enterprises. Management of Environmental Quality: An International Journal, 30(3), 557–577. https://doi.org/10.1108/meq-03-2018-0053

Sohag, K., Begum, R. A., Abdullah, S. M. S., et al. (2015). Dynamics of energy use, technological innovation, economic growth and trade openness in Malaysia. Energy, 90, 1497–1507. https://doi.org/10.1016/j.energy.2015.06.101

Wang, K. H., Umar, M., Akram, R., et al. (2021). Is technological innovation making world “Greener”? An evidence from changing growth story of China. Technological Forecasting and Social Change, 165, 120516. https://doi.org/10.1016/j.techfore.2020.120516

Wang, Z., Yang, Z., Zhang, Y., et al. (2012). Energy technology patents–CO2 emissions nexus: An empirical analysis from China. Energy Policy, 42, 248–260. https://doi.org/10.1016/j.enpol.2011.11.082

Zakari, A., Khan, I., & Alvarado, R. (2023). The impact of environmental technology innovation and energy credit rebate on carbon emissions: A comparative analysis. Journal of International Development, 35(8), 2609–2625. https://doi.org/10.1002/jid.3788

Zhang, J., Chang, Y., Zhang, L., et al. (2018). Do technological innovations promote urban green development—A spatial econometric analysis of 105 cities in China. Journal of Cleaner Production, 182, 395–403. https://doi.org/10.1016/j.jclepro.2018.02.067




DOI: https://doi.org/10.24294/jipd.v8i7.4320

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Kaouthar Gazdar

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.