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Innovation, the knowledge economy, and green growth: Is knowledge-intensive growth really environmentally friendly?

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  • Wang, Xinxin
  • Xu, Zeshui
  • Qin, Yong
  • Skare, Marinko

Abstract

Green growth plays a vital role in achieving ecological sustainability in the presence of eco-innovation. This study explores the relationship between technological innovation, the knowledge economy, and sustainability using panel 1996–2017 data from 30 Organization for Economic Cooperation and Development countries. The knowledge economy variables are presented as intangible assets from the EU KLEMS Release 2019 database, and panel vector autoregression estimation, the Granger causality tests impulse response functions, and the forecast-error variance decomposition technique are used to test the link. The findings demonstrate that the knowledge economy is good for sustainability and that technological innovation results in green growth. Intangible asset is positively associated with green growth. Green growth has a positive effect on purchased organizational capital, vocational training, and own-account organizational capital. Granger causality test results indicate a causal relationship between intangible asset and green growth. This work contributes to the current literature on sustainable development and highlights five aspects that affect performance. Our study provides a novel insight on knowledge intensive growth impact on environment and economy. Policymakers and practitioners can use this study quantitative knowledge to design efficient policy and management guidelines for promoting green growth.

Suggested Citation

  • Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2022. "Innovation, the knowledge economy, and green growth: Is knowledge-intensive growth really environmentally friendly?," Energy Economics, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:eneeco:v:115:y:2022:i:c:s0140988322004601
    DOI: 10.1016/j.eneco.2022.106331
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    Cited by:

    1. Paolo Morganti & Rosa Carolina Valdes, 2023. "The Perils of Asymmetrical Technological Changes in a Knowledge Economy with Complete Markets," Sustainability, MDPI, vol. 15(17), pages 1-17, August.
    2. Fan, Xuecheng & Xu, Zeshui & Qin, Yong & Škare, Marinko, 2023. "Quantifying the short- and long-run impact of inflation-related price volatility on knowledge asset investment," Journal of Business Research, Elsevier, vol. 165(C).
    3. Sun, Yunpeng & Gao, Pengpeng & Tian, Wenjuan & Guan, Weimin, 2023. "Green innovation for resource efficiency and sustainability: Empirical analysis and policy," Resources Policy, Elsevier, vol. 81(C).
    4. She, Weijun & Mabrouk, Fatma, 2023. "Impact of natural resources and globalization on green economic recovery: Role of FDI and green innovations in BRICS economies," Resources Policy, Elsevier, vol. 82(C).
    5. Qian, Yu & Xu, Zeshui & Qin, Yong & Gou, Xunjie & Skare, Marinko, 2023. "Measuring the varying relationships between sustainable development and oil booms in different contexts: An empirical study," Resources Policy, Elsevier, vol. 85(PB).

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    More about this item

    Keywords

    Green growth; Knowledge economy; Innovation; Panel vector autoregression; Environmental policies;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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