IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v204y2023icp141-151.html
   My bibliography  Save this article

Analyzing the role of renewable energy transition and industrialization on ecological sustainability: Can green innovation matter in OECD countries

Author

Listed:
  • Liao, Jixiang
  • Liu, Xingye
  • Zhou, Xueyan
  • Tursunova, Nargiza Rakhimovna

Abstract

This research investigates the influence of renewable energy transition, industrialization, and green innovation on the ecological sustainability of selected OECD countries using annual data from 1990 to 2019. It also evaluates the moderating effects of industrialization and green innovation on ecological footprints. In doing so, we apply method of moments quantile regression that allows asymmetric impacts of energy transition and other variables at conditional quantiles of ecological footprint (EFP). The initial findings justify the presence of cross-sectional dependence, heterogeneous slope coefficients, panel cointegration, and stationarity properties of the data. The results from linear heterogeneous estimators confirm that clean energy transition and green innovations reduce EFP. In contrast, industrialization, economic growth, and foreign investment contribute to higher EFP. The outcomes through MMQR reveal that industrialization, economic growth, and foreign investment contribute to a higher EFP; however, their marginal contribution substantially varied at lower and higher quantiles of EF. Manifestly, the impact of the renewable energy transition is more substantial at higher quantiles and vice versa. The moderating effects of industrialization and green innovation implied that the integration of green innovation policy neutralizes negative fallouts of industrial processes. These results offer valuable policy recommendations.

Suggested Citation

  • Liao, Jixiang & Liu, Xingye & Zhou, Xueyan & Tursunova, Nargiza Rakhimovna, 2023. "Analyzing the role of renewable energy transition and industrialization on ecological sustainability: Can green innovation matter in OECD countries," Renewable Energy, Elsevier, vol. 204(C), pages 141-151.
    • Handle: RePEc:eee:renene:v:204:y:2023:i:c:p:141-151
    DOI: 10.1016/j.renene.2022.12.089
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122018857
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.12.089?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Razzaq, Asif & Sharif, Arshian & An, Hui & Aloui, Chaker, 2022. "Testing the directional predictability between carbon trading and sectoral stocks in China: New insights using cross-quantilogram and rolling window causality approaches," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    2. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    3. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    4. Xu, Li & Wang, Xiuli & Wang, Lijun & Zhang, Di, 2022. "Does technological advancement impede ecological footprint level? The role of natural resources prices volatility, foreign direct investment and renewable energy in China," Resources Policy, Elsevier, vol. 76(C).
    5. Paul, Justin & Feliciano-Cestero, María M., 2021. "Five decades of research on foreign direct investment by MNEs: An overview and research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 800-812.
    6. repec:eme:ijhma0:ijhma-02-2021-0018 is not listed on IDEAS
    7. Dogan, Eyup & Madaleno, Mara & Inglesi-Lotz, Roula & Taskin, Dilvin, 2022. "Race and energy poverty: Evidence from African-American households," Energy Economics, Elsevier, vol. 108(C).
    8. Lamia Jamel & Abdelkader Derbali, 2016. "Do energy consumption and economic growth lead to environmental degradation? Evidence from Asian economies," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1170653-117, December.
    9. Khan, Irfan & Hou, Fujun & Zakari, Abdulrasheed & Tawiah, Vincent Konadu, 2021. "The dynamic links among energy transitions, energy consumption, and sustainable economic growth: A novel framework for IEA countries," Energy, Elsevier, vol. 222(C).
    10. Muntasir Murshed & Mohamed Elheddad & Rizwan Ahmed & Mohga Bassim & Ei Thuzar Than, 2022. "Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(1), pages 33-78, March.
    11. Haiqian Ke & Shangze Dai & Haichao Yu, 2022. "Effect of green innovation efficiency on ecological footprint in 283 Chinese Cities from 2008 to 2018," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2841-2860, February.
    12. Zhang, Ren Jie & Razzaq, Asif, 2022. "Influence of economic policy uncertainty and financial development on renewable energy consumption in the BRICST region," Renewable Energy, Elsevier, vol. 201(P1), pages 526-533.
    13. Razzaq, Asif & Wang, Yufeng & Chupradit, Supat & Suksatan, Wanich & Shahzad, Farrukh, 2021. "Asymmetric inter-linkages between green technology innovation and consumption-based carbon emissions in BRICS countries using quantile-on-quantile framework," Technology in Society, Elsevier, vol. 66(C).
    14. Anthanasius Fomum Tita & Pieter Opperman, 2021. "Understanding the behaviour of house prices and household income per capita in South Africa: application of the asymmetric autoregressive distributed lag model," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 15(3), pages 632-652, August.
    15. Du, Ling & Jiang, Hua & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji & Razzaq, Asif, 2022. "Asymmetric effects of high-tech industry and renewable energy on consumption-based carbon emissions in MINT countries," Renewable Energy, Elsevier, vol. 196(C), pages 1269-1280.
    16. Anthanasius F. Tita & Pieter Opperman, 2021. "Understanding the behaviour of house prices and household income per capita in South Africa: Application of the asymmetric autoregressive distributed lag model," Working Papers 856, Economic Research Southern Africa.
    17. Dogan, Eyup & Madaleno, Mara & Taskin, Dilvin & Tzeremes, Panayiotis, 2022. "Investigating the spillovers and connectedness between green finance and renewable energy sources," Renewable Energy, Elsevier, vol. 197(C), pages 709-722.
    18. Magdalene Williams & Ahmad Abu Alrub & Mehmet Aga, 2022. "Ecological Footprint, Economic Uncertainty and Foreign Direct Investment in South Africa: Evidence From Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Approach," SAGE Open, , vol. 12(2), pages 21582440221, April.
    19. Paramati, Sudharshan Reddy & Ummalla, Mallesh & Apergis, Nicholas, 2016. "The effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies," Energy Economics, Elsevier, vol. 56(C), pages 29-41.
    20. Swamy, P A V B, 1970. "Efficient Inference in a Random Coefficient Regression Model," Econometrica, Econometric Society, vol. 38(2), pages 311-323, March.
    21. Najabat Ali & Khamphe Phoungthong & Kuaanan Techato & Waheed Ali & Shah Abbas & Joshuva Arockia Dhanraj & Anwar Khan, 2022. "FDI, Green Innovation and Environmental Quality Nexus: New Insights from BRICS Economies," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    22. Shao, Shuai & Razzaq, Asif, 2022. "Does composite fiscal decentralization reduce trade-adjusted resource consumption through institutional governance, human capital, and infrastructure development?," Resources Policy, Elsevier, vol. 79(C).
    23. Sun, Yunpeng & Guan, Weimin & Razzaq, Asif & Shahzad, Mohsin & Binh An, Nguyen, 2022. "Transition towards ecological sustainability through fiscal decentralization, renewable energy and green investment in OECD countries," Renewable Energy, Elsevier, vol. 190(C), pages 385-395.
    24. Usman, Muhammad & Balsalobre-Lorente, Daniel, 2022. "Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?," Energy Policy, Elsevier, vol. 162(C).
    25. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    26. Chao Hung Wang & Wei‐Jr Juo, 2021. "An environmental policy of green intellectual capital: Green innovation strategy for performance sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3241-3254, November.
    27. Opoku, Eric Evans Osei & Aluko, Olufemi Adewale, 2021. "Heterogeneous effects of industrialization on the environment: Evidence from panel quantile regression," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 174-184.
    28. Asim Anwar & Mustafa Younis & Inayat Ullah, 2020. "Impact of Urbanization and Economic Growth on CO 2 Emission: A Case of Far East Asian Countries," IJERPH, MDPI, vol. 17(7), pages 1-8, April.
    29. Sun, Yunpeng & Razzaq, Asif & Sun, Huaping & Irfan, Muhammad, 2022. "The asymmetric influence of renewable energy and green innovation on carbon neutrality in China: Analysis from non-linear ARDL model," Renewable Energy, Elsevier, vol. 193(C), pages 334-343.
    30. Rahman, Mohammad Mafizur & Alam, Khosrul, 2022. "Impact of industrialization and non-renewable energy on environmental pollution in Australia: Do renewable energy and financial development play a mitigating role?," Renewable Energy, Elsevier, vol. 195(C), pages 203-213.
    31. Afshan, Sahar & Ozturk, Ilhan & Yaqoob, Tanzeela, 2022. "Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: Evidence from MM-QR method," Renewable Energy, Elsevier, vol. 196(C), pages 151-160.
    32. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xi Liu & Yugang He & Renhong Wu, 2024. "Revolutionizing Environmental Sustainability: The Role of Renewable Energy Consumption and Environmental Technologies in OECD Countries," Energies, MDPI, vol. 17(2), pages 1-21, January.
    2. Feng, Yanchao & Zhang, Juan & Geng, Yong & Jin, Shurui & Zhu, Ziyi & Liang, Zhou, 2023. "Explaining and modeling the reduction effect of low-carbon energy transition on energy intensity: Empirical evidence from global data," Energy, Elsevier, vol. 281(C).
    3. Shabir, Maria & Pazienza, Pasquale & De Lucia, Caterina, 2023. "Energy innovation and ecological footprint: Evidence from OECD countries during 1990–2018," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    4. Driha, Oana & Cascetta, Furio & Nardini, Sergio & Bianco, Vincenzo, 2023. "Evolution of renewable energy generation in EU27. A decomposition analysis," Renewable Energy, Elsevier, vol. 207(C), pages 348-358.
    5. Yu, Siming & Wan, Kang & Cai, Cheng & Xu, Lingli & Zhao, Tuanjie, 2023. "Resource curse and green growth in China: Role of energy transitions under COP26 declarations," Resources Policy, Elsevier, vol. 85(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Haohui & Peng, Gang & Luo, Yan & Du, Hongmei, 2023. "Asymmetric influence of renewable energy, ecological governance, and human development on green growth of BRICS countries," Renewable Energy, Elsevier, vol. 206(C), pages 1007-1019.
    2. Wang, Shubin & Li, Jian & Razzaq, Asim, 2023. "Do environmental governance, technology innovation and institutions lead to lower resource footprints: An imperative trajectory for sustainability," Resources Policy, Elsevier, vol. 80(C).
    3. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    4. Luo, Shunjun & Mabrouk, Fatma, 2022. "Nexus between natural resources, globalization and ecological sustainability in resource-rich countries: Dynamic role of green technology and environmental regulation," Resources Policy, Elsevier, vol. 79(C).
    5. Chen, Jie & Huang, Shoujun & Kamran, Hafiz Waqas, 2023. "Empowering sustainability practices through energy transition for sustainable development goal 7: The role of energy patents and natural resources among European Union economies through advanced panel," Energy Policy, Elsevier, vol. 176(C).
    6. Liu, Wei & Shen, Yedan & Razzaq, Asim, 2023. "How renewable energy investment, environmental regulations, and financial development derive renewable energy transition: Evidence from G7 countries," Renewable Energy, Elsevier, vol. 206(C), pages 1188-1197.
    7. Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    8. Wang, Zhe & Chen, Huangxin & Teng, Yin-Pei, 2023. "Role of greener energies, high tech-industries and financial expansion for ecological footprints: Implications from sustainable development perspective," Renewable Energy, Elsevier, vol. 202(C), pages 1424-1435.
    9. Sun, Yanlei & Wang, Siyao & Xing, Zhanlei, 2023. "Do international trade diversification, intellectual capital, and renewable energy transition ensure effective natural resources management in BRICST region," Resources Policy, Elsevier, vol. 81(C).
    10. Wei, Shuxin & Wei, Wenshan & Umut, Alican, 2023. "Do renewable energy consumption, technological innovation, and international integration enhance environmental sustainability in Brazil?," Renewable Energy, Elsevier, vol. 202(C), pages 172-183.
    11. Meng, Yue & Wu, Haoyue & Wang, Yunchen & Duan, Yinying, 2022. "International trade diversification, green innovation, and consumption-based carbon emissions: The role of renewable energy for sustainable development in BRICST countries," Renewable Energy, Elsevier, vol. 198(C), pages 1243-1253.
    12. Yu, Siming & Wan, Kang & Cai, Cheng & Xu, Lingli & Zhao, Tuanjie, 2023. "Resource curse and green growth in China: Role of energy transitions under COP26 declarations," Resources Policy, Elsevier, vol. 85(PA).
    13. Ma, Yubo & Fan, Yufeng & Razzaq, Asif, 2023. "Influence of technical efficiency and globalization on sustainable resources management: Evidence from South Asian countries," Resources Policy, Elsevier, vol. 81(C).
    14. Liu, Xiaoxi & Razzaq, Asif & Shahzad, Mohsin & Irfan, Muhammad, 2022. "Technological changes, financial development and ecological consequences: A comparative study of developed and developing economies," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    15. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    16. Liu, Fengyu & Feng, Jue & Zhai, Ge & Razzaq, Asif, 2022. "Influence of fiscal decentralization and renewable energy investment on ecological sustainability in EU: What is the moderating role of institutional governance?," Renewable Energy, Elsevier, vol. 200(C), pages 1265-1274.
    17. Li, Zeyun & Kuo, Yen-Ku & Mahmud, Abdul Rahman & Nassani, Abdelmohsen A. & Haffar, Mohamed & Muda, Iskandar, 2022. "Integration of renewable energy, environmental policy stringency, and climate technologies in realizing environmental sustainability: Evidence from OECD countries," Renewable Energy, Elsevier, vol. 196(C), pages 1376-1384.
    18. Zhou, Hui & Awosusi, Abraham Ayobamiji & Dagar, Vishal & Zhu, Guohua & Abbas, Shujaat, 2023. "Unleashing the asymmetric effect of natural resources abundance on carbon emissions in regional comprehensive economic partnership: What role do economic globalization and disaggregating energy play?," Resources Policy, Elsevier, vol. 85(PA).
    19. Li, Qingtao & Sharif, Arshian & Razzaq, Asif & Yu, Yangyu, 2022. "Do climate technology, financialization, and sustainable finance impede environmental challenges? Evidence from G10 economies," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    20. Li, Xiangrong & Zhu, Shaoying & Li, Yanyong & Chang, Ronghua, 2022. "What is the asymmetric influence of natural resource rent and green innovation on the ecological sustainability of the ARCTIC region," Resources Policy, Elsevier, vol. 79(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:204:y:2023:i:c:p:141-151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.