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The effect of innovation on CO2 emissions of OCED countries from 1990 to 2014

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Abstract

Human activities are accelerating CO2 emissions all over the world most especially in high-income nations, spurring the rise in greenhouse gas emissions. For decades, technologies have been developed and patented in response to the environmental problems. There is an outcry for innovative ways to combat the environmental menace. This attests to the enormity of research being done, in recent years, to investigate how innovation can help mitigate CO2 emissions. This research aims at investigating into the effect of innovation on CO2 emissions in 28 OCED countries at an individual level for the recent period 1990 to 2014. The source of data for our utilized variables is the World Bank Indicators. Our study employed three key models based on the STIRPAT model, the economic-EKC growth model, and the innovation-EKC model. The findings of our study revealed that innovation plays a key role towards mitigation of CO2 emissions in most OECD countries. Its impact, however, varies across the countries, depending on some key factors and channels elucidated in this paper. Additionally, our study asserts that improvement in GDP per capita leads to the rise in CO2 in most OECD economies, although mitigate emissions in few OECDs; hence, the economic-EKC model is not valid for most economies. Non-renewable energy accelerates emissions whiles renewable energy sources mitigate emissions. Research and development (R&D) improves environmental quality and the EKC for both economic growth and innovation, valid for a few economies of the OECDs. We conclude that innovation is necessary in mitigating CO2 emissions; hence, governments and policy makers should invest and promote innovative renewable energy sources.

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Acknowledgements

We appreciate the financial support from the National Natural Science Foundation of China (No. 71603105), Natural Science Foundation of Jiangsu, China (No. SBK2016042936), Science Foundation of Ministry of Education of China (No. 16YJC790067), and China Postdoctoral Science Foundation (Nos. 2017M610051, 2018T110054).

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Authors and Affiliations

  1. School of Management, Jiangsu University, Zhenjiang, 212013, People’s Republic of China

    Claudia Nyarko Mensah, Xingle Long, Kofi Baah Boamah, Isaac Asare Bediako, Lamini Dauda & Muhammed Salman

  2. Intellectual Property Research Center of Jiangsu Province, Jiangsu University, Zhenjiang, 212013, People’s Republic of China

    Xingle Long

  3. School of Business and Management Studies, Koforidua Technical University, Koforidua, Ghana

    Kofi Baah Boamah & Isaac Asare Bediako

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  1. Claudia Nyarko Mensah
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Correspondence to Xingle Long.

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Mensah, C.N., Long, X., Boamah, K.B. et al. The effect of innovation on CO2 emissions of OCED countries from 1990 to 2014. Environ Sci Pollut Res 25, 29678–29698 (2018). https://doi.org/10.1007/s11356-018-2968-0

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