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Does R&D investment in renewable energy technologies reduce greenhouse gas emissions?

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  • Hailemariam, Abebe
  • Ivanovski, Kris
  • Dzhumashev, Ratbek

Abstract

In this paper, we investigate the impact of public investment in R&D in renewable energy technologies on environmental quality using a spectrum of environmental emissions. We employ new and innovative panel data methods to address the existing econometric issues in estimating the effect of R&D on greenhouse gas emissions. Then, using data from advanced and emerging economies that span the period from 1980 to 2020, we find that R&D investment in renewable technologies has a significant positive effect on environmental quality by reducing a range of pollutants, including carbon dioxide, methane, and other pollutants. The results are robust to a series of sensitivity tests. The findings have important policy implications for climate change and various recent environmental initiatives, including the transition to net-zero emissions and sustainability.

Suggested Citation

  • Hailemariam, Abebe & Ivanovski, Kris & Dzhumashev, Ratbek, 2022. "Does R&D investment in renewable energy technologies reduce greenhouse gas emissions?," Applied Energy, Elsevier, vol. 327(C).
    • Handle: RePEc:eee:appene:v:327:y:2022:i:c:s0306261922013137
    DOI: 10.1016/j.apenergy.2022.120056
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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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