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The role of entrepreneurship and innovation in the environmental and economic dimensions of growth

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  • Ali Maâlej

    (University of Sfax, Tunisia)

Abstract

This study is mainly performed to examine the effects of renewable energy, entrepreneurial activity, and innovation on GDP and CO2 emissions in 13 European countries from 2002 to 2017. The estimation of the feasible generalized least square (FGLS) method shows that the share of renewable energy consumption in accordance with the total energy consumption, entrepreneurial activity, and innovation, defined by the number of patents, increases the economic growth but inversely decreases CO2 emission. The share of research & development expenditure to GDP lowers the CO2 emission without having any impact on the economy. With reference to these results, a set of implications are deduced, specifically for policymakers. The substitution of renewable energy and the encouragement of innovative entrepreneurs to undertake green businesses are essential to attain the objectives of sustainable development.

Suggested Citation

  • Ali Maâlej, 2022. "The role of entrepreneurship and innovation in the environmental and economic dimensions of growth," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 4(2), pages 85-95, June.
    • Handle: RePEc:ssi:jouird:v:4:y:2022:i:2:p:85-95
    DOI: 10.9770/ird.2022.4.2(7)
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    References listed on IDEAS

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    1. Du, Kerui & Li, Pengzhen & Yan, Zheming, 2019. "Do green technology innovations contribute to carbon dioxide emission reduction? Empirical evidence from patent data," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 297-303.
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    More about this item

    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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