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Traversing Innovation and Environmental Sustainability Nexus: Mediating Role of Energy Forms in High Energy Economies

Author

Listed:
  • Raheela Mehboob

    (International Islamic University Islamabad)

  • Salma Bibi

    (International Islamic University Islamabad)

  • Misbah Aslam

    (International Islamic University Islamabad)

Abstract

The concerns about environmental degradation are exacerbated by hikes in energy consumption. The innovations amplification effect the environment while energy sources effect both negatively. This study investigates the detrimental role of energy forms (mediation Effects) in technological innovation and the environmental nexus. The research uses a sample of 23 economies with the highest energy consumption globally from 1990 to 2020. The seemingly unrelated regression (SUR) model has been used to explore the innovation and environment nexus. The study shows both positive and negative mediating effects of non-renewable and renewable energy use. Additionally, it highlights a simultaneously adverse direct impact of innovation on the environment, adding to a more complex comprehension of the complex relationship between ecological sustainability and technological advancement. The findings emphasize the significance of considering various routes of influence while evaluating the environmental implications of technological advancement. The findings of the study provide evidence for the emphasis of technical innovation in improving environmental performance. Further, it emphasizes the significance of renewable energy usage in mitigating environmental degradation. Policymakers should provide incentives to research and development in technical innovations. However, giving priority and subsidy for the adoption of renewable energy sources can help enhance environmental performance and mitigate environmental degradation.

Suggested Citation

  • Raheela Mehboob & Salma Bibi & Misbah Aslam, 2025. "Traversing Innovation and Environmental Sustainability Nexus: Mediating Role of Energy Forms in High Energy Economies," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 4(1), pages 117-146, June.
    • Handle: RePEc:azm:journl:v:4:y:2025:i:1:p:117-146
    DOI: 10.55603/jes.v4i1.a8
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    References listed on IDEAS

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    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
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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