AUTHOR=Shabir Mohsin , Hussain Iftikhar , Işık Özcan , Razzaq Kamran , Mehroush Iqra 

TITLE=The role of innovation in environmental-related technologies and institutional quality to drive environmental sustainability

JOURNAL=Frontiers in Environmental Science

VOLUME=11

YEAR=2023

URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2023.1174827

DOI=10.3389/fenvs.2023.1174827

ISSN=2296-665X

ABSTRACT=<p>In this study, we examine the long-run effect of environmental-related technological innovation, institutional quality, trade openness, energy consumption, and economic growth on <inline-formula id="inf1"><mml:math id="m1" xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:msub><mml:mrow><mml:mi>C</mml:mi><mml:mi>O</mml:mi></mml:mrow><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:math></inline-formula> emissions in APEC countries from 2004 to 2018. Firstly, panel unit root tests were used to explore the stationarity of each data series. The panel unit root test findings showed that all data series are stationary at the first difference. Second, the Westerlund panel cointegration test was used to deal with heterogeneity and cross-sectional dependence. Thirdly, the empirical findings from the augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators indicate that environmental-related technological innovation and institutional quality destructively affect <inline-formula id="inf2"><mml:math id="m2" xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:msub><mml:mrow><mml:mi>C</mml:mi><mml:mi>O</mml:mi></mml:mrow><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:math></inline-formula> emissions. In contrast, trade openness, energy consumption, and economic growth positively impact <inline-formula id="inf3"><mml:math id="m3" xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:msub><mml:mrow><mml:mi>C</mml:mi><mml:mi>O</mml:mi></mml:mrow><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:math></inline-formula> emissions. While causality analysis refers to the unidirectional causality runs from trade openness, energy consumption to <inline-formula id="inf4"><mml:math id="m4" xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:msub><mml:mrow><mml:mi>C</mml:mi><mml:mi>O</mml:mi></mml:mrow><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:math></inline-formula> emission and bidirectional causality relationships are between technological innovation, institutional quality, GDP, <inline-formula id="inf5"><mml:math id="m5" xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:msub><mml:mrow><mml:mi>C</mml:mi><mml:mi>O</mml:mi></mml:mrow><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:math></inline-formula> emission. Based on the findings, we proposed that APEC countries should raise investment in environmental-related technological innovation and improve the quality of the institutional environment to achieve sustainable development targets.</p>