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Towards Sustainable Development: Assessing the Significance of World Uncertainty in Green Technology Innovation

Author

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  • Jie Dou

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Junyi Dou

    (Carey Business School, Johns Hopkins University, Washington, DC 20001, USA)

  • Meng Qin

    (School of Marxism, Qingdao University, Qingdao 266071, China
    Faculty of Economics and Business Administration, Doctoral School of Economics and Business Administration, West University of Timisoara, 300115 Timisoara, Romania)

  • Chi-Wei Su

    (School of Economics, Qingdao University, Qingdao 266071, China
    Faculty of Finance, City University of Macau, Macao 999078, China)

Abstract

This paper uses the two-way fixed effects model to empirically examine the impact of the World Uncertainty Index (WUI) on Green Patents (GPs). Quantitative results indicate that WUI negatively affects GPs, meaning that world uncertainty significantly hinders green technology innovation. This effect is mediated through relaxed environmental regulation and reduced financial support. These findings underline that increased uncertainty decreases both the variables of environmental regulation and financial support, thus delaying the innovation of green technology. Low-income countries’ weak economic and technological bases have a statistically insignificant negative impact on GP. However, a statistically significant negative impact is indicated for high-income countries, reflecting their higher sensitivity to world uncertainties. The WUI’s more negative effect on GPs is experienced in middle-income countries due to continuous economic and technological development and less adaptability.

Suggested Citation

  • Jie Dou & Junyi Dou & Meng Qin & Chi-Wei Su, 2025. "Towards Sustainable Development: Assessing the Significance of World Uncertainty in Green Technology Innovation," Sustainability, MDPI, vol. 17(3), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1314-:d:1584794
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