Skip to main content

Advertisement

Log in

Estimating the effect of technological innovations on environmental degradation: empirical evidence from selected ASEAN and SAARC countries

  • Published:
Environment, Development and Sustainability Aims and scope Submit manuscript

Abstract

Over the last few decades, both South and Southeast Asian regions have witnessed noteworthy economic development but unfortunately could not manage to mitigate the looming threat of climate change. Several initiatives have been taken recently to achieve sustainable development goals via technological innovations and the adoption of renewable energy. Given this milieu, it becomes pertinent to examine how technological innovations have assisted the South Asian Association of Regional Cooperation and Association of Southeast Asian Nations to combat environmental challenges. To address the research gap, this study investigated the impact of technological innovations on environmental degradation for selected countries from 1991 to 2018. Due to the presence of cross-sectional dependence, we have applied the second generational panel unit root test and after the confirmation of long-run cointegration, the panel autoregressive distributed lag models based on the mean group, pool mean group, and augmented mean group techniques have been used to calculate the long and short-run estimates. The results indicate that technological innovations have a negative and significant impact on the ecological footprint in the long run but are insignificant in the short run for both South and Southeast Asian countries. The study also confirms the existence of the environmental Kuznets curve hypothesis in both regions. Based on findings, it is recommended for countries in these regions to pay serious attention to the adoption of cleaner technology and to increase investment in research and development activities geared at enhancing renewable energy consumption for the sustainability of the environment.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3 

Similar content being viewed by others

Availability of data and material

Yes, available on demand.

Code availability

NA.

Notes

  1. List of countries are provided in "Appendix A".

References

  • Adebayo, T. S., & Kirikkaleli, D. (2021). Impact of renewable energy consumption, globalization, and technological innovation on environmental degradation in Japan: Application of wavelet tools. Environment, Development and Sustainability, 23, 16057–16082.

    Article  Google Scholar 

  • Ahmed, A., Uddin, G. S., & Sohag, K. (2016). Biomass energy, technological progress, and the environmental Kuznets curve: Evidence from selected European countries. Biomass and Bioenergy, 90, 202–208.

    Article  CAS  Google Scholar 

  • Albino, V., Ardito, L., Dangelico, R. M., & Petruzzelli, A. M. (2014). Understanding the development trends of low-carbon energy technologies: A patent analysis. Applied Energy, 135, 836–854.

    Article  Google Scholar 

  • Al-Mulali, U., Ozturk, I., & Lean, H. H. (2015). The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe. Natural Hazards, 79(1), 621–644.

    Article  Google Scholar 

  • Ameer, A., & Munir, K. (2016). Effect of economic growth, trade openness, urbanization, and technology on the environment of selected Asian countries. https://mpra.ub.uni-muenchen.de/id/eprint/74571.

  • Amri, F. (2019). Innovation technology and environmental sustainability in the case of Tunisia. In economic research forum working papers (No. 1323).

  • Ansari, M. A., & Khan, N. A. (2020). Decomposing the trade-environment nexus for high income, upper and lower middle income countries: What do the composition, scale, and technique effect indicate? Ecological Indicators, 77, 166–175.

    Google Scholar 

  • Antweiler, W., Copeland, B. R., & Taylor, M. S. (2001). Is free trade good for the environment? American Economic Review, 91(4), 877–908.

    Article  Google Scholar 

  • Aşıcı, A. A., & Acar, S. (2016). Does income growth relocate ecological footprint? Ecological Indicators, 61, 707–714.

    Article  Google Scholar 

  • Ausubel, J. H. (1991). Does climate still matter? Nature, 350(6320), 649–652.

    Article  Google Scholar 

  • Banerjee, S., & Akuli, K. (2014). Advantages of green technology. Recent Research in science and technology, 11(2), 89–109.

    Google Scholar 

  • Breitung, J., & Pesaran, M. H. (2005). Unit roots and cointegration in panels. Forthcoming in L. Matyas and P. Sevestre The Econometrics of Panel Data.

  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239–253.

    Article  Google Scholar 

  • Burhan, M., Singh, A. K., & Jain, S. K. (2017). Patents as a proxy for measuring innovations: A case of changing patent filing behavior in Indian public-funded research organizations. Technological Forecasting and Social Change, 123, 181–190.

    Article  Google Scholar 

  • Chen, W., & Lei, Y. (2018). The impacts of renewable energy and technological innovation on environment-energy-growth nexus: New evidence from a panel quantile regression. Renewable Energy, 123, 1–14.

    Article  Google Scholar 

  • Chien, F., Ajaz, T., Andlib, Z., Chau, K. Y., Ahmad, P., & Sharif, A. (2021). The role of technology innovation, renewable energy, and globalization in reducing environmental degradation in Pakistan: A step towards a sustainable environment. Renewable Energy, 177, 308–317.

    Article  Google Scholar 

  • Choi, I. (2001). Unit root tests for panel data. Journal of international money and Finance, 20(2), 249–272.

  • Colgan, J. D. (2009). The international energy agency. Challenges for the 21st Century. GPPi Energy Policy Paper, 6.

  • Dauda, L., Long, X., Mensah, C. N., & Salman, M. (2019). The effects of economic growth and innovation on CO2 emissions in different regions. Environmental Science and Pollution Research, 26(15), 15028–15038.

    Article  CAS  Google Scholar 

  • Dietz, T., & Rosa, E. A. (1994). Rethinking the environmental impacts of population, affluence, and technology. Human Ecology Review, 1(2), 277–300.

    Google Scholar 

  • Dietz, T., & Rosa, E. A. (1997). Effects of population and affluence on CO2 emissions. Proceedings of the National Academy of Sciences, 94(1), 175–179.

  • Dogan, E. (2016). Analyzing the linkage between renewable and non-renewable energy consumption and economic growth by considering a structural break in time-series data. Renewable Energy, 99, 1126–1136.

    Article  Google Scholar 

  • Dogan, E., & Seker, F. (2016). Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy. Renewable Energy, 94, 429–439.

    Article  CAS  Google Scholar 

  • Eberhardt, M., and S. Bond. (2009). Cross-section dependence in nonstationary panel models: A novel estimator. MPRA Paper 17692, University Library of Munich. http://mpra.ub.uni-muenchen.de/17692/1/MPRApaper 17692.

  • Eberhardt, M. (2012). Estimating panel time-series models with heterogeneous slopes. The Stata Journal, 12(1), 61–71.

    Article  Google Scholar 

  • Eberhardt, M., & Teal, F. (2010). Econometrics for grumblers: A new look at the literature on cross-country growth empirics. Journal of Economic Surveys., 25(1), 109–155.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Gozgor, G. (2017). Does trade matter for carbon emissions in OECD countries? Evidence from a new trade openness measure. Environmental Science and Pollution Research, 24(36), 27813–27821.

    Article  CAS  Google Scholar 

  • Grossman, G. M., & Helpman, E. (1991). Innovation and growth in the global economy. MIT press.

    Google Scholar 

  • Grossman, G. M., & Krueger, A. B. (1991). Environmental impacts of a North American free trade agreement.

  • Hadri, K. (2000). Testing for stationarity in heterogeneous panel data. The Econometrics Journal, 3(2), 148–161.

  • Halkos, G. E., & Tzeremes, N. G. (2009). Exploring the existence of Kuznets curve in countries' environmental efficiency using DEA window analysis. Ecological Economics, 68(7), 2168–2176.

  • Harris, R. D., & Tzavalis, E. (1999). Inference for unit roots in dynamic panels where the time dimension is fixed. Journal of econometrics, 91(2), 201–226.

  • Hsiao, C. (2005). Why panel data? The Singapore Economic Review, 50(02), 143–154.

    Article  Google Scholar 

  • Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of econometrics, 115(1), 53–74.

  • Jordaan, S. M., Romo-Rabago, E., McLeary, R., Reidy, L., Nazari, J., & Herremans, I. M. (2017). The role of energy technology innovation in reducing greenhouse gas emissions: A case study of Canada. Renewable and Sustainable Energy Reviews, 78, 1397–1409.

    Article  Google Scholar 

  • Letchumanan, R. (2010). Climate change is Southeast Asia up to the challenge?: Is there an ASEAN policy on climate change?.

  • Levin, A., & Lin, C. F. (1993). Unit root tests in panel data: new results. University of California at San Diego, Economics Working Paper Series.

  • Majaw, B. (2012). Climate change and South Asian association for regional cooperation: A regional response. International Journal of Social Sciences and Humanity Studies, 4(2), 71–80.

    Google Scholar 

  • Maranville, S. (1992). Entrepreneurship in the business curriculum. Journal of Education for Business, 68(1), 27–31.

    Article  Google Scholar 

  • Mensah, C. N., Long, X., Boamah, K. B., Bediako, I. A., Dauda, L., & Salman, M. (2018). The effect of innovation on CO2 emissions of OCED countries from 1990 to 2014. Environmental Science and Pollution Research, 25(29), 29678–29698.

    Article  CAS  Google Scholar 

  • Munir, K., & Ameer, A. (2018). Effect of economic growth, trade openness, urbanization, and technology on the environment of Asian emerging economies. Management of Environmental Quality, 29(6), 1123–1134.

    Article  Google Scholar 

  • Network, G. F. (2019). Global footprint network. Obtenido de Global Footprint Network: http://www.footprintnetwork.org online. Accessed, (pp. 1–10).

  • Omri, A. (2020). Technological innovation and sustainable development: Does the stage of development matter? Environmental Impact Assessment Review, 83, 106398.

    Article  Google Scholar 

  • Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development (No. 992927783402676). International Labour Organization.

  • Pesaran, M., (2004). General diagnostic tests for cross section dependence in panels. Working paper. The University of Cambridge.

  • Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967–1012.

  • Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American statistical Association, 94(446), 621–634.

  • Pesaran, M. H., & Smith, R. (1995). Estimating long-run relationships from dynamic heterogeneous panels. Journal of econometrics, 68(1), 79–113.

  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265–312.

    Article  Google Scholar 

  • Qayyum, U., & Mahmood, Z. (2013). Inter-linkage between foreign direct investment and foreign trade in Pakistan: Are they complements or substitute?.

  • Qayyum, U., Anjum, S., & Sabir, S. (2021). Armed conflict, militarization and ecological footprint: Empirical evidence from South Asia. Journal of Cleaner Production, 281, 125299.

    Article  Google Scholar 

  • Qayyum, U., Sabir, S., & Anjum, S. (2021). Urbanization, informal economy, and ecological footprint quality in South Asia. Environmental Science and Pollution Research, 28, 1–11.

    Article  Google Scholar 

  • Rafique, M. Z., Nadeem, A. M., Xia, W., Ikram, M., Shoaib, H. M., & Shahzad, M. (2021). Does economic complexity matter for environmental sustainability? Using ecological footprint as an indicator. Environment, Development, and Sustainability. https://doi.org/10.1007/s10668-021-01625-4

    Article  Google Scholar 

  • Raiser, K., Naims, H., & Bruhn, T. (2017). Corporatization of the climate? Innovation, intellectual property rights, and patents for climate change mitigation. Energy Research & Social Science, 27, 1–8.

    Article  Google Scholar 

  • Raskin, P. D. (1995). Methods for estimating the population contribution to environmental change. Ecological Economics, 15(3), 225–233.

    Article  CAS  Google Scholar 

  • Ren, L., Zhou, S., Peng, T., & Ou, X. (2021). A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China. Renewable and Sustainable Energy Reviews, 143, 110846.

    Article  CAS  Google Scholar 

  • Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5 Part 2), S71–S102.

    Article  Google Scholar 

  • Sabir, S., & Gorus, M. S. (2019). The impact of globalization on ecological footprint: Empirical evidence from the South Asian countries. Environmental Science and Pollution Research, 26(32), 33387–33398.

    Article  Google Scholar 

  • Sabir, S., Qayyum, U., & Majeed, T. (2020). FDI and environmental degradation: The role of political institutions in South Asian countries. Environmental Science and Pollution Research, 27(26), 32544–32553.

    Article  Google Scholar 

  • Saudi, M. H. M. (2019). The role of renewable, non-renewable energy consumption and technology innovation in testing environmental Kuznets curve in Malaysia.

  • Sharif, A., & Raza, S. A. (2016). Dynamic relationship between urbanization, energy consumption and environmental degradation in Pakistan: Evidence from structure break testing. Journal of Management Sciences, 3(1), 1–21.

  • Soni. (2015). Advantages of green technology. Social Issues and Environmental Problems, 3, ISSN 2394-3629(P).

  • Serrat, O. (2009). Harnessing creativity and innovation in the workplace. Knowl Solut, 61, 1–11.

    Google Scholar 

  • Shaikh, S. A., Taiyyeba, Z., & Khan, K. (2018). The nexus between technological innovation and carbon dioxide emissions: Evidence from China. NICE Research Journal, 11, 181–193.

    Article  Google Scholar 

  • Shang, J., Wang, Z., Li, L., Chen, Y., & Li, P. (2018). A study on the correlation between technology innovation and the new-type urbanization in Shaanxi province. Technological Forecasting and Social Change, 135, 266–273.

    Article  Google Scholar 

  • Su, H. N., & Moaniba, I. M. (2017). Does innovation respond to climate change? Empirical evidence from patents and greenhouse gas emissions. Technological Forecasting and Social Change, 122, 49–62.

    Article  Google Scholar 

  • Swart, J., & Brinkmann, L. (2020). economic complexity and the environment: Evidence from Brazil. In W. Leal Filho, U. Tortato, & F. Frankenberger (Eds.), World sustainability series (pp. 3–45). Springer.

    Google Scholar 

  • Tariq, B., & Rahim, R. A. (2016). The environmental effects of intra-industry trade in the SAARC region. International Journal of Business and Society, 17(1).

  • Tang, C. F., & Tan, E. C. (2013). Exploring the nexus of electricity consumption, economic growth, energy prices, and technology innovation in Malaysia. Applied Energy, 104, 297–305.

    Article  Google Scholar 

  • Ulucak, R., & Bilgili, F. (2018). A reinvestigation of EKC model by ecological footprint measurement for high, middle, and low-income countries. Journal of Cleaner Production, 188, 144–157.

    Article  Google Scholar 

  • World Bank. (2020). World Development Indicators (WDI) | Data Catalog. https://datacatalog.world bank.org/dataset/world-development-indicators.

  • Waggoner, P. E., & Ausubel, J. H. (2002). A framework for sustainability science: A renovated IPAT identity. Proceedings of the National Academy of Sciences, 99(12), 7860–7865.

  • Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and statistics, 69(6), 709–748.

  • Yii, K. J., & Geetha, C. (2017). The nexus between technology innovation and CO2 emissions in Malaysia: Evidence from Granger causality test. Energy Procedia, 105, 3118–3124.

    Article  Google Scholar 

  • Young, A. (1991). Learning by doing and the dynamic effects of international trade. The Quarterly Journal of Economics, 106(2), 369–405.

    Article  Google Scholar 

  • Yu, Y., & Du, Y. (2019). Impact of technological innovation on CO2 emissions and emissions trend prediction on ‘new normal’economy in China. Atmospheric Pollution Research, 10(1), 152–161.

    Article  CAS  Google Scholar 

  • Yusuf, M. (2019). Role of innovation in testing environment Kuznets curve: A case of the Indonesian economy. International Journal of Energy Economics and Policy, 9(1), 276–281.

    Google Scholar 

  • Zhang, Y. J., Peng, Y. L., Ma, C. Q., & Shen, B. (2017). Can environmental innovation facilitate carbon emissions reduction? Evidence from China. Energy Policy, 100, 18–28.

    Article  Google Scholar 

  • Zhu, H., Duan, L., Guo, Y., & Yu, K. (2016). The effects of FDI, economic growth, and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression. Economic Modelling, 58, 237–248.

    Article  Google Scholar 

Download references

Funding

NA.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Unbreen Qayyum.

Ethics declarations

Conflict of interest

All authors declare that they have no conflict of interest.

Consent to participate

NA

Consent to publish

NA

Ethical approval

We fulfill all ethical criteria for the submission of this manuscript.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

ASEAN countries

SAARC countries

List of countries

 Indonesia

Bangladesh

 Malaysia

India

 Philippines

Pakistan

 Singapore

Sri-Lanka

 Thailand

 

 Vietnam

 

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kiani, T.A., Sabir, S., Qayyum, U. et al. Estimating the effect of technological innovations on environmental degradation: empirical evidence from selected ASEAN and SAARC countries. Environ Dev Sustain 25, 6529–6550 (2023). https://doi.org/10.1007/s10668-022-02315-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10668-022-02315-5

Keywords

Navigation