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Nexus between Cyclical Innovation in Green Technologies and CO 2 Emissions in Nordic Countries: Consent toward Environmental Sustainability

Author

Listed:
  • Nihal Ahmed

    (College of Economics & Management, Northwest Agricultural & Forestry University, Xianyang 712100, China)

  • Franklin Ore Areche

    (Professional School of Agroindustrial Engineering, National University of Huancavelica, Huancavelica 09001, Peru)

  • Dante Daniel Cruz Nieto

    (School of Agricultural Engineering, José Faustino Sánchez Carrión National University, Huacho 15137, Peru)

  • Ricardo Fernando Cosio Borda

    (Faculty of Management Sciences, Universidad Privada del Norte, Lima 15314, Peru)

  • Berenice Cajavilca Gonzales

    (Faculty of Management Sciences, Universidad Privada del Norte, Lima 15314, Peru)

  • Piotr Senkus

    (Institute of Social Sciences, SWPS University of Social Sciences and Humanities, 03-815 Warsaw, Poland)

  • Paweł Siemiński

    (Department of Economics and Economic Polity in Agribusiness, Poznań University of Life Sciences, Wojska Polskiego 28, 60-637 Poznań, Poland)

  • Adam Skrzypek

    (Institute of Journalism and Management, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland)

Abstract

Several economies have acknowledged that environmental degradation poses a serious danger to worldwide sustainable production and consumption. Policy makers concur that the increased use and production of carbon-intensive technologies has intensified the detrimental consequences of carbon dioxide emissions. In response, a number of nations have reacted by enacting stringent regulations and encouraging green technology innovations across corporate and governmental organizations. Evidence that already exists suggests that research and development is a cyclical process; nevertheless, the non-linear influence of shocks in research and development and innovation in green technologies on CO 2 emissions in the Nordic nations has not been well investigated. Using panel data from 1995 to 2019, this research explores the asymmetric link between innovation in green technologies and CO 2 emissions. The cointegration link between the chosen variables was validated using the Westerlund cointegration test and the Johansen–Fisher panel cointegration test. The findings of both tests confirm the presence of cointegration association between dependent and independent variables. The outcomes of CS-ARDL revealed that negative shocks in creating green technologies contribute to carbon dioxide emissions during recessions. Second, the findings supported the notion that innovation in green technology may reduce carbon dioxide emissions during times of economic expansion. Thirdly, the GDP increases the CO 2 emissions, but the usage of renewable energy decreases CO 2 emissions. In addition, the robustness analysis validated the consistency and precision of the existing findings. In summary, the findings suggest that the link between advances in environmentally friendly technologies and levels of carbon dioxide emissions were inversely proportional.

Suggested Citation

  • Nihal Ahmed & Franklin Ore Areche & Dante Daniel Cruz Nieto & Ricardo Fernando Cosio Borda & Berenice Cajavilca Gonzales & Piotr Senkus & Paweł Siemiński & Adam Skrzypek, 2022. "Nexus between Cyclical Innovation in Green Technologies and CO 2 Emissions in Nordic Countries: Consent toward Environmental Sustainability," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11768-:d:918976
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    Cited by:

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    2. Nihal Ahmed & Adnan Ahmed Sheikh & Bilal Hassan & Sajjad Nawaz Khan & Ricardo Cosio Borda & Juan Martín Campos Huamán & Piotr Senkus, 2022. "The Role of Educating the Labor Force in Sustaining a Green Economy in MINT Countries: Panel Symmetric and Asymmetric Approach," Sustainability, MDPI, vol. 14(19), pages 1-12, September.
    3. Yang, Bin & Wu, Qiong & Sharif, Arshian & Uddin, Gazi Salah, 2023. "Non-linear impact of natural resources, green financing, and energy transition on sustainable environment: A way out for common prosperity in NORDIC countries," Resources Policy, Elsevier, vol. 83(C).
    4. Shengzhe Ruan & Yi Song & Jinhua Cheng & Cheng Zhan, 2023. "Green Eco-Innovation and Supply of Critical Metals: Evidence from China," Sustainability, MDPI, vol. 15(17), pages 1-24, August.

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