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A technological innovation and economic progress enhancement: an assessment of sustainable economic and environmental management

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Abstract

This study examines the role of technological innovation and economic progress on environmental pollution by using STRIPAT and EKC theoretical frameworks in 25 developing Asian countries from the period 1998 to 2019. For technological advancement, the energy intensity has been used to gauge how much of the quantity of energy is employed to produce the additional unit of gross domestic product at domestic level. Therefore, the volume of the energy used in the production process is highly important as it is documented through the energy intensity. To capture the impact of innovation, the sum of total patent applications and trademark applications for the sampled countries has been used. This study applied second-generation unit root and panel cointegration techniques to estimate the results. To estimate the long-run relationship of variables and the cross-sectional interdependence, Pedroni Residual and Westerlund Cointegration tests are applied. Further, the Hausman-Taylor-type test has been used to check the efficiency of the pool mean group (PMG). The results of PMG regression confirm the existence of EKC in the developing Asian countries. The results of this study showed that technological development, innovations, and economic progress have the potential to reduce carbon emission and to protect the environment in developing Asian economies. Moreover, the results of error correction model indicate that in case of any external shock, this model will converge towards equilibrium within 64.6 years. The study proposed that a policy framework related to technological innovations should be sustained and the advancement of human capital and research and development should be the primary focus of the developing nations to mitigate the environmental challenges.

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Authors and Affiliations

  1. School of Management, Nanchang University, Nanchang City, Jiangxi Province, People’s Republic of China

    Wu Hao

  2. School of Foreign Languages, Jiangxi Science & Technology Normal University, Nanchang City, Jiangxi Province, People’s Republic of China

    Wu Hao

  3. Department of Economics, School of Business Economics (SBE), University of Management and Technology , C-II Johar Town, Lahore, Pakistan

    Farhat Rasul & Muhammad Shahid Hassan

  4. Department of Economics, Quaid-e-Azam University, Islamabad, Pakistan

    Zobia Bhatti

  5. Department of Economics, The Islamia University of Bahawalpur, Bahawalpur, Pakistan

    Ishtiaq Ahmed

  6. Department of Economics, University of Education, Bank Road Lahore Campus, Lahore, Pakistan

    Nabila Asghar

Authors
  1. Wu Hao
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  2. Farhat Rasul
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  3. Zobia Bhatti
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  4. Muhammad Shahid Hassan
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  5. Ishtiaq Ahmed
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  6. Nabila Asghar
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Contributions

Wu Hao: initial draft preparation; Farhat Rasul (corresponding author Email:farhat.rasul@umt.edu.pk): econometric results estimation, hypothesis testing; Zobia Bhatti: review of literature, data collection, and tabulation; Muhammad Shahid Hassan: results interpretation and diagnostic testing; Ishtaiq Ahmed: methodological framework; Nabeela Asghar: proof reading and technical advice.

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Correspondence to Farhat Rasul.

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Appendix

Appendix

Table 9 Hausman test (1978) for MG and PMG
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Table 10 Hausman test (1978) results to compare DFE and PMG
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Table 11 PMG estimate
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Hao, W., Rasul, F., Bhatti, Z. et al. A technological innovation and economic progress enhancement: an assessment of sustainable economic and environmental management. Environ Sci Pollut Res 28, 28585–28597 (2021). https://doi.org/10.1007/s11356-021-12559-9

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  • DOI: https://doi.org/10.1007/s11356-021-12559-9

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