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Impact of energy efficiency, technology innovation, institutional quality, and trade openness on greenhouse gas emissions in ten Asian economies

  • Applied Economics of Energy and Environment in Sustainability
  • Published:
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Abstract

Despite the fact that Asian economies have experienced robust economic growth in recent decades, rising pollution emissions have raised worries among policymakers about the long-term stability of this output growth. Knowing this fact, the present study attempts to empirically analyze the impact of some important factors, e.g., energy efficiency, technology innovations, trade openness, and institutional quality, on environment in 10 Asian economies over the period 1995–2018. Taking into account the slope heterogeneity and cross-sectional dependence present in the data, Westerlund and Edgerton (2008) and Banerjee and Carrion-i-Silvestre (2017) cointegration techniques and cross-sectionally augmented autoregressive distributed lag model (CS-ARDL) estimation are applied. For robust analysis, augmented mean group (AMG) and common correlated effects mean group (CCEMG) are also employed in the study. The empirical findings provided by selected variables reveal that both trade openness and institutional quality have detrimental impact, whereas energy efficiency and technology innovations have favorable impact on environmental quality in the selected economies. Empirical findings are robust to various policy recommendations. To create a sustainable future environment, Asian economies should focus on the improvement of their institutions quality and increase investments in technology innovations. The Asian countries must encourage trade-related environmental regulations and energy efficiency policies for better and sustainable environmental quality.

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Data availability

The data that support the findings of this study are attached.

Change history

  • 29 October 2022

    New e-mail inserted for the corresponding Author.

Notes

  1. See Swamy (1970) and Pesaran and Yamagata (2008) for more details.

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Funding

This research is funded by 2020 national social science fund major project “Research on the spatial effects of cross regional major infrastructure in China” (approval No.: 20 & zd099), participated in the sub-project “integration of cross regional major infrastructure and Urban Agglomeration.”

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Authors and Affiliations

  1. School of Economics and Management, Chang’an University, Middle-section of Nan’er Huan Road Xi’an, Xi’an, 710064, ShaanXi Province, China

    Zheng Wenlong

  2. Saigon International University, Ho CHi Minh City, Vietnam

    Nguyen Hoang Tien

  3. College of Management Sciences, KIET University, Karachi, Pakistan

    Amena Sibghatullah

  4. Universitas Mercu Buana, Jalan Meruya Selatan No. 1, Meruya Selatan, Kembangan, Jakarta, Indonesia

    Daru Asih, Mochamad Soelton & Yanto Ramli

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  1. Zheng Wenlong
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  2. Nguyen Hoang Tien
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  3. Amena Sibghatullah
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  4. Daru Asih
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  5. Mochamad Soelton
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Contributions

Zheng Wenlong: writing—original draft. Nguyen Hoang Tien: methodology supervision. Amena Sibghatullah: conceptualization, writing—review and editing. Daru Asih: software. Mochamad Soelton: data curation. Yanto Ramli: visualization and formatting.

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Correspondence to Nguyen Hoang Tien.

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Wenlong, Z., Tien, N.H., Sibghatullah, A. et al. Impact of energy efficiency, technology innovation, institutional quality, and trade openness on greenhouse gas emissions in ten Asian economies. Environ Sci Pollut Res 30, 43024–43039 (2023). https://doi.org/10.1007/s11356-022-20079-3

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