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The impacts of energy insecurity on green innovation: A multi-country study

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  • Yang, Hao-Chang
  • Feng, Gen-Fu
  • Zhao, Xin Xin
  • Chang, Chun-Ping

Abstract

This research illustrates the impact of energy insecurity on green innovation based on green patent data from 1970 to 2018 in 40 sample countries. Through the bootstrap-based bias-corrected FE (BCFE) estimator analysis with the advantages of bootstrap-based bias correction in panels with cross-sectional dependence and in high-order dynamics, we first find that increased insecurity of fossil energy has an incentive impact on green innovation. Second, through sub-sample regression, we find that energy insecurity in non-OECD countries has a more significant positive impact on green innovation than OECD countries. Third, energy insecurity under the leadership of the left-wing party has no impact on green innovation, while the right-wing party exhibits a positive effect. Fourth, for oil-exporting countries and importing countries, the impact of energy insecurity on green innovation is significantly different. Finally, this paper examines the mediator role of energy and environmental policies and energy consumption structure through causal inference and confirms the mechanism for the impact of energy insecurity on green innovation.

Suggested Citation

  • Yang, Hao-Chang & Feng, Gen-Fu & Zhao, Xin Xin & Chang, Chun-Ping, 2022. "The impacts of energy insecurity on green innovation: A multi-country study," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 139-154.
    • Handle: RePEc:eee:ecanpo:v:74:y:2022:i:c:p:139-154
    DOI: 10.1016/j.eap.2022.01.017
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    More about this item

    Keywords

    Energy insecurity; Green innovation; BCFE estimator; Fossil energy;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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