Dynamic relationship among environmental regulation, innovation, CO2 emissions, population, and economic growth in OECD countries: A panel investigation

By Rubayyat Hashmi, Khorshed Alam. Journal of Cleaner Production, 2019

705 citations recorded by the source corpus.

Abstract Promoting green innovation and regulating emissions through carbon pricing are the two fundamental driving forces of climate change policies on carbon abatement. However, the existing body of empirical evidence focusing on these inter-linkages is rather meager. Such evidence is also inconclusive in the context of the Organization for Economic Co-operation and Development (OECD) countries. This study, therefore, examines the effects of environmental regulation and innovation on the carbon emission reduction of OECD countries during the period 1999–2014. On the basis of the “stochastic impacts by regression on population, affluence, and technology” (STIRPAT) model, this study also develops a new model called “stochastic impacts by regression on population, affluence, regulation, and technology” (STIRPART) to extend the analysis on the evaluation of factors influencing carbon emissions. In addition, the effects of environmental regulations and environmentally friendly technologies are empirically tested by using panel fixed-effects, random-effects and Generalized Method of Moments (GMM) models with the Driscoll–Kraay corrected robust standard errors that tackle cross-sectional dependence and time and panel fixed effects. Results indicate that a 1% increase in environmentally friendly patent reduces carbon emissions by 0.017%, and a 1% increase in environmental tax revenue per capita reduces carbon emissions by 0.03% for OECD countries. The current contribution aims to optimize market-based instruments, such as patents and carbon pricing, for the implementation of efficient and cost-effective climate change policies.

Subfields: Economics and Econometrics, Environmental Engineering

View Paper: https://www.semanticscholar.org/paper/fdd4e4ef293871d0413d4b33ccbf6471fa6df08a

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Citations in the corpus

Green innovation and China’s CO2 emissions – the moderating effect of institutional quality (2021, background): “This identity is also widely used to analyze the driving factors of various environmental changes (for example, CO2 emissions and energy consumption) (York, Rosa, and Dietz 2002; Bai et al. 2019; Hashmi and Alam 2019).”
Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies (2021, neutral): “Hashmi and Alam (2019) emphasized the need to promote the green innovation by implementing the carbon taxes, which is a key indicator in the reduction of the GHG emissions.”
Determinants of CO2 emissions in European Union countries: Does environmental regulation reduce environmental pollution? (2020, methodology): “On the one hand, there is evidence that environmental regulation has been effective in reducing emissions (Hashmi and Alam, 2019).”
Exploring the Role of Carbon Taxation Policies on CO2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries (2020, background): “Previously, the empirical studies have ignored the aspect of comparative analysis and role of energy intensity, carbon intensity, and population [7,9,10].”