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Political risk and green technology improvement: New insights from global evidence

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  • Yang, Hao-Chang
  • Cai, Yi-Fei
  • Zhang, Miao-Yin

Abstract

This study investigated the relationship between political risk and green innovation utilizing data from 128 countries worldwide from the period 1984–2020. First, we find that accompanying political risk reduction positively promotes green technology improvement, and this still holds after a series of robustness tests. Second, a sub-sample test based on high-income versus OECD countries notes that the positive effect of political risk on green technology improvement is more significant in the sample of non-high-income versus non-OECD countries. Finally, we test whether partisan competition and high-tech product exports moderate the effect of political risk on green innovation. The results indicate that these two factors positively moderate the impact of political risk on green innovation. Our findings suggest that lower political risk offers stable financial support and policy backing for green innovation activities to enable sustainable development.

Suggested Citation

  • Yang, Hao-Chang & Cai, Yi-Fei & Zhang, Miao-Yin, 2022. "Political risk and green technology improvement: New insights from global evidence," Innovation and Green Development, Elsevier, vol. 1(1).
    • Handle: RePEc:eee:ingrde:v:1:y:2022:i:1:s2949753122000042
    DOI: 10.1016/j.igd.2022.100004
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    More about this item

    Keywords

    Political risk; Green innovation; Sustainable development; Partisan competition;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • 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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