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The Impact of Environmental Technologies and Environmental Policy Stringency on Environmental Degradation

Author

Listed:
  • Özen Akçakanat
  • Gökhan Özkul
  • Ozan Özdemir
  • Muhammed Kasım

Abstract

The increase in global warming and environmental pollution accelerates ecological degradation and prompts governments worldwide to adopt policies aimed at addressing environmental challenges while maintaining economic growth. In this context, this study examines how environmental technologies and policy stringency affect CO₂ emissions using panel data from 38 OECD countries for the period 1990-2022. The analysis, based on fixed effects and Driscoll-Kraay (1998) estimators, reveals that per capita GDP, exports, industrial activities, fossil fuel consumption, and education expenditures support economic expansion but also contribute to higher emission levels. The results indicate that both energy use and policy stringency significantly impact emission outcomes. While the proportion of environmental technologies reduces emissions, the unexpected positive relationship shown by the number of patents may be attributed to the time lag between the implementation of patents or to the production of more patents in high-emission countries. Overall, the findings indicate that environmental innovation alone cannot achieve emission reductions; it must be supported by strong policy implementation.

Suggested Citation

  • Özen Akçakanat & Gökhan Özkul & Ozan Özdemir & Muhammed Kasım, 2025. "The Impact of Environmental Technologies and Environmental Policy Stringency on Environmental Degradation," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(SI), pages 318-335.
    • Handle: RePEc:ahs:journl:v:10:y:2025:i:si:p:318-335
    DOI: 10.30784/epfad.1813824
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    References listed on IDEAS

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    1. Cheng Jin & Asif Razzaq & Faiza Saleem & Avik Sinha, 2022. "Asymmetric effects of eco-innovation and human capital development in realizing environmental sustainability in China: evidence from quantile ARDL framework," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 4947-4970, December.
    2. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, April.
    3. Zhao, Ziyi & Zhao, Yuhuan & Shi, Xunpeng & Zheng, Lu & Fan, Shunan & Zuo, Sumin, 2024. "Green innovation and carbon emission performance: The role of digital economy," Energy Policy, Elsevier, vol. 195(C).
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    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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