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On the Determinants of Green Technology Diffusion: An Empirical Analysis of Economic, Social, Political, and Environmental Factors

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  • Busra Agan

    (Department of Economics, Eastern Mediterranean University, Via Mersin 10, Famagusta 99628, North Cyprus, Turkey)

  • Mehmet Balcilar

    (Department of Economics, Eastern Mediterranean University, Via Mersin 10, Famagusta 99628, North Cyprus, Turkey
    Department of Economics, OSTIM Technical University, Ankara 06374, Turkey)

Abstract

The purpose of this study is to investigate the importance of economic, social, political, and environmental factors in determining green technology diffusion. We use a unique annual panel dataset covering 58 nations from 1990 to 2019. Based on dynamic panel data models estimated using system generalized method of moments (GMM), we test whether the technological achievement of nations, general technology diffusion trends, environmental performance, democratic accountability, income distribution, foreign direct investment, income level, and socioeconomic conditions are significant determinants. Our findings indicate that green technology diffusion has a significant relationship with all of these factors. We obtain new evidence that general or brown technological innovation, diffusion, and achievement trends in a country are significant drivers of environmental technology diffusion. The findings of our paper have significant implications for sustainable development, given the importance of green products and technologies. The results of the study suggest that policies aimed at promoting the diffusion of green technologies may not be successful in the presence of unfavorable economic, social, political, or environmental conditions.

Suggested Citation

  • Busra Agan & Mehmet Balcilar, 2022. "On the Determinants of Green Technology Diffusion: An Empirical Analysis of Economic, Social, Political, and Environmental Factors," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2008-:d:746240
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