IDEAS home Printed from https://ideas.repec.org/a/wly/natres/v48y2024i1p154-170.html
   My bibliography  Save this article

Eco‐innovation and environmental sustainability in Germany: An empirical approach with smooth structural shifts

Author

Listed:
  • Ugur Korkut Pata
  • Emrah Sofuoglu
  • Zahoor Ahmed
  • Oktay Kizilkaya

Abstract

Germany has set an ambitious goal of meeting the recommendations of COP‐26 and reducing its carbon intensity to zero by 2045. Germany is a leader in environmental patents after the United States, Japan, and South Korea, and the environmental implications of Germany's leadership in eco‐innovation hold important clues for achieving net zero goals. In particular, the European Union is one of the global communities making the greatest efforts to combat emissions, and the success of the leading role of environmental patents in this Union in reducing CO2 emissions is an important research topic for scholars. Therefore, this study investigates the impact of environmental patents on CO2 emissions under the environmental Kuznets curve (EKC) hypothesis in Germany. To this end, the study applies Bayer–Hanck and Fourier ADL approaches from 1970 to 2019. The main findings do not confirm the EKC hypothesis, while environmental patents play an active role in CO2 reduction. Based on these outcomes, Germany should consider a long‐term green policy to decouple economic growth and emissions. At the same time, German policy should promote the development and application of environmental patents to achieve the net zero targets for 2045.

Suggested Citation

  • Ugur Korkut Pata & Emrah Sofuoglu & Zahoor Ahmed & Oktay Kizilkaya, 2024. "Eco‐innovation and environmental sustainability in Germany: An empirical approach with smooth structural shifts," Natural Resources Forum, Blackwell Publishing, vol. 48(1), pages 154-170, February.
  • Handle: RePEc:wly:natres:v:48:y:2024:i:1:p:154-170
    DOI: 10.1111/1477-8947.12316
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-8947.12316
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1477-8947.12316?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
    ---><---

    References listed on IDEAS

    as
    1. Gerlagh, Reyer, 2007. "Measuring the value of induced technological change," Energy Policy, Elsevier, vol. 35(11), pages 5287-5297, November.
    2. Xin, Daleng & Ahmad, Manzoor & Lei, Hong & Khattak, Shoukat Iqbal, 2021. "Do innovation in environmental-related technologies asymmetrically affect carbon dioxide emissions in the United States?," Technology in Society, Elsevier, vol. 67(C).
    3. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    4. Magazzino, Cosimo & Mele, Marco & Morelli, Giovanna & Schneider, Nicolas, 2021. "The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries," Utilities Policy, Elsevier, vol. 72(C).
    5. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Erdogan, Sinan & Sarkodie, Samuel Asumadu, 2023. "The role of renewable and nuclear energy R&D expenditures and income on environmental quality in Germany: Scrutinizing the EKC and LCC hypotheses with smooth structural changes," Applied Energy, Elsevier, vol. 342(C).
    6. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    7. Yang, Tianle & Li, Fangmin & Du, Min & Huang, Miao & Li, Yinuo, 2023. "Impacts of alternative energy production innovation on reducing CO2 emissions: Evidence from China," Energy, Elsevier, vol. 268(C).
    8. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    9. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    10. Ahmad, Najid & Youjin, Liu & Žiković, Saša & Belyaeva, Zhanna, 2023. "The effects of technological innovation on sustainable development and environmental degradation: Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    11. Wang, Zhaohua & Yang, Zhongmin & Zhang, Yixiang & Yin, Jianhua, 2012. "Energy technology patents–CO2 emissions nexus: An empirical analysis from China," Energy Policy, Elsevier, vol. 42(C), pages 248-260.
    12. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    13. Banerjee, Piyali & Arčabić, Vladimir & Lee, Hyejin, 2017. "Fourier ADL cointegration test to approximate smooth breaks with new evidence from Crude Oil Market," Economic Modelling, Elsevier, vol. 67(C), pages 114-124.
    14. Ma, Xuejiao & Ahmad, Najid & Oei, Pao-Yu, 2021. "Environmental Kuznets curve in France and Germany: Role of renewable and nonrenewable energy," Renewable Energy, Elsevier, vol. 172(C), pages 88-99.
    15. Aldieri, Luigi & Kotsemir, Maxim & Paolo Vinci, Concetto, 2021. "Environmental innovations and productivity: Empirical evidence from Russian regions," Resources Policy, Elsevier, vol. 74(C).
    16. Zhao, Xiaoli & Ma, Qian & Yang, Rui, 2013. "Factors influencing CO2 emissions in China's power industry: Co-integration analysis," Energy Policy, Elsevier, vol. 57(C), pages 89-98.
    17. Recep Ulucak & Danish & Yacouba Kassouri, 2020. "An assessment of the environmental sustainability corridor: Investigating the non‐linear effects of environmental taxation on CO2 emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 1010-1018, July.
    18. Ting Lan & Galen Sher & Jing Zhou, 2022. "The Economic Impacts on Germany of a Potential Russian Gas Shutoff," IMF Working Papers 2022/144, International Monetary Fund.
    19. Danish & Recep Ulucak & Salah Ud‐Din Khan & Muhammad Awais Baloch & Nan Li, 2020. "Mitigation pathways toward sustainable development: Is there any trade‐off between environmental regulation and carbon emissions reduction?," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 813-822, July.
    20. Ertugrul, Hasan Murat & Çetin, Murat & Şeker, Fahri & Dogan, Eyüp, 2015. "The impact of trade openness on global carbon dioxide emissions: Evidence from the top ten emitters among developing countries," MPRA Paper 97539, University Library of Munich, Germany, revised 10 Mar 2016.
    21. Pei-Zhi Liu & Seema Narayan & Yi-Shuai Ren & Yong Jiang & Konstantinos Baltas & Basil Sharp, 2022. "Re-Examining the Income–CO 2 Emissions Nexus Using the New Kink Regression Model: Does the Kuznets Curve Exist in G7 Countries?," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    22. Enders, Walter & Lee, Junsoo, 2012. "The flexible Fourier form and Dickey–Fuller type unit root tests," Economics Letters, Elsevier, vol. 117(1), pages 196-199.
    23. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
    24. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    25. Franck Aggeri, 1999. "Environmental policies and innovation : a knowledge-based perspective on cooperative approaches," Post-Print halshs-00644610, HAL.
    26. Wurlod, Jules-Daniel & Noailly, Joëlle, 2018. "The impact of green innovation on energy intensity: An empirical analysis for 14 industrial sectors in OECD countries," Energy Economics, Elsevier, vol. 71(C), pages 47-61.
    27. de Jong, Stefan P.L. & Wardenaar, Tjerk & Horlings, Edwin, 2016. "Exploring the promises of transdisciplinary research: A quantitative study of two climate research programmes," Research Policy, Elsevier, vol. 45(7), pages 1397-1409.
    28. Alataş, Sedat, 2022. "Do environmental technologies help to reduce transport sector CO2 emissions? Evidence from the EU15 countries," Research in Transportation Economics, Elsevier, vol. 91(C).
    29. Ralf Becker & Walter Enders & Junsoo Lee, 2006. "A Stationarity Test in the Presence of an Unknown Number of Smooth Breaks," Journal of Time Series Analysis, Wiley Blackwell, vol. 27(3), pages 381-409, May.
    30. Kartal, Mustafa Tevfik & Pata, Ugur Korkut & Kılıç Depren, Serpil & Depren, Özer, 2023. "Effects of possible changes in natural gas, nuclear, and coal energy consumption on CO2 emissions: Evidence from France under Russia’s gas supply cuts by dynamic ARDL simulations approach," Applied Energy, Elsevier, vol. 339(C).
    31. Peter Boswijk, H., 1994. "Testing for an unstable root in conditional and structural error correction models," Journal of Econometrics, Elsevier, vol. 63(1), pages 37-60, July.
    32. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2020. "Technology transfer, climate change mitigation, and environmental patent impact on sustainability and economic growth: A comparison of European countries," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    33. Aggeri, Franck, 1999. "Environmental policies and innovation: A knowledge-based perspective on cooperative approaches," Research Policy, Elsevier, vol. 28(7), pages 699-717, September.
    34. Ottmar Edenhofer & Matthias Kalkuhl & Christina Roolfs, 2021. "Carbon Pricing and Revenue Recycling: An Overview of Vertical and Horizontal Equity Effects for Germany," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(05), pages 10-14, September.
    35. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    36. Erdogan, Sinan & Fatai Adedoyin, Festus & Victor Bekun, Festus & Asumadu Sarkodie, Samuel, 2020. "Testing the transport-induced environmental Kuznets curve hypothesis: The role of air and railway transport," Journal of Air Transport Management, Elsevier, vol. 89(C).
    37. Hannes Egli, 2004. "The environmental Kuznets curve : evidence from time series data for Germany," CER-ETH Economics working paper series 03/28, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    38. Modupe Oluyemisi Oyebanji & Rui Alexandre Castanho & Sema Yilmaz Genc & Dervis Kirikkaleli, 2022. "Patents on Environmental Technologies and Environmental Sustainability in Spain," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    Full references (including those not matched with items on IDEAS)

    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. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Mukhtarov, Shahriyar, 2024. "Technological changes and carbon neutrality targets in European countries: A sustainability approach with Fourier approximations," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    2. Hasanov, Fakhri J. & Shannak, Sa'd, 2020. "Electricity incentives for agriculture in Saudi Arabia. Is that relevant to remove them?," Energy Policy, Elsevier, vol. 144(C).
    3. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    4. Maxwell Chukwudi Udeagha & Edwin Muchapondwa, 2023. "Environmental sustainability in South Africa: Understanding the criticality of economic policy uncertainty, fiscal decentralization, and green innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1638-1651, June.
    5. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Erdogan, Sinan & Sarkodie, Samuel Asumadu, 2023. "The role of renewable and nuclear energy R&D expenditures and income on environmental quality in Germany: Scrutinizing the EKC and LCC hypotheses with smooth structural changes," Applied Energy, Elsevier, vol. 342(C).
    6. Maxwell Chukwudi Udeagha & Nicholas Ngepah, 2022. "Dynamic ARDL Simulations Effects of Fiscal Decentralization, Green Technological Innovation, Trade Openness, and Institutional Quality on Environmental Sustainability: Evidence from South Africa," Sustainability, MDPI, vol. 14(16), pages 1-35, August.
    7. Nihan Degirmencioglu Aydin & Mucahit Aydin, 2024. "An Environmental Impact Assessment of Major Economic Sectors in Turkey: Economics and Law Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5893-5913, June.
    8. Sugra Humbatova & Afag Huseyn & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Investment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 129-148, March.
    9. Ersin, Özgür Ömer & Ustabaş, Ayfer & Usman, Ojonugwa, 2024. "The role of environmental innovation on ecological footprint in nations with high technology exports concentrations in international trade," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    10. Mustafa Naimoğlu & Andrew Adewale Alola, 2025. "Analyzing environmental delivery of industrial technology and energy use-loss in China," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 14(1), pages 1-17, December.
    11. Daniel Balsalobre‐Lorente & Oana M. Driha & George Halkos & Shekhar Mishra, 2022. "Influence of growth and urbanization on CO2 emissions: The moderating effect of foreign direct investment on energy use in BRICS," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 227-240, February.
    12. Erdogan, Sinan, 2024. "Linking green fiscal policy, energy, economic growth, population dynamics, and environmental degradation: Empirical evidence from Germany," Energy Policy, Elsevier, vol. 189(C).
    13. Tursoy, Turgut & Faisal, Faisal & Berk, Niyazi & Shahbaz, Muhammad, 2018. "How do Stock Prices and Metal Prices Contribute to Economic Activity in Turkey? The Importance of Linear and Non-linear ARDL," MPRA Paper 88899, University Library of Munich, Germany.
    14. Najid Ahmad & Liangsheng Du & Xian-Liang Tian & Jianlin Wang, 2019. "Chinese growth and dilemmas: modelling energy consumption, CO2 emissions and growth in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(1), pages 315-338, January.
    15. Babatunde Sunday Eweade & Ada Chigozie Akadiri & Kehinde O. Olusoga & Ruth Oluyemi Bamidele, 2024. "The symbiotic effects of energy consumption, globalization, and combustible renewables and waste on ecological footprint in the United Kingdom," Natural Resources Forum, Blackwell Publishing, vol. 48(1), pages 274-291, February.
    16. Fabian Knorre & Martin Wagner & Maximilian Grupe, 2021. "Monitoring Cointegrating Polynomial Regressions: Theory and Application to the Environmental Kuznets Curves for Carbon and Sulfur Dioxide Emissions," Econometrics, MDPI, vol. 9(1), pages 1-35, March.
    17. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    18. Faisal Faisal & Ruqiya Pervaiz & Nesrin Ozatac & Turgut Tursoy, 2021. "Exploring the relationship between carbon dioxide emissions, urbanisation and financial deepening for Turkey using the symmetric and asymmetric causality approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17374-17402, December.
    19. Chen, Zhiguo & Gao, Wei & Zafar, Quratulain & Dördüncü, Hazar, 2023. "Natural resources extraction and geopolitical risk: Examining oil resources extraction in China," Resources Policy, Elsevier, vol. 85(PA).
    20. Koçak Emrah & Uzay Nısfet, 2019. "The effect of financial development on income inequality in Turkey: An estimate of the Greenwood-Jovanovic hypothesis," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 319-344, December.

    More about this item

    Statistics

    Access and download statistics

    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:wly:natres:v:48:y:2024:i:1:p:154-170. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1477-8947 .

    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.