Does improvement in green growth influence the development of environmental related technology?

Abstract

The present study examines the impact of green growth on environmental related technology (EO) innovation by deploying dynamic panel threshold regression on panel dataset of 32 countries over a period of 2000 and 2015. The study findings show that 1% increase in CO 2 Productivity on the national average would lead to increase in environmental technology innovation. Similarly, if environmental policy strengthening (EPS) of the average country is above the threshold then a 1% rise in (EPS) would lead to increase in (EO) innovation. However, a rise in renewable energy supply (RE) has no statistically significant impact on (EO) innovation. Hence, innovations in (EO) are encouraged at the global level that could make the process of acquiring renewable energy more environmentally sustainable for sustainable growth. Interestingly innovation in environment related technology (EO) shows an indirect relationship with the socioeconomic factor. To conclude social ties along with financial support would be essential to promote the (EO) innovation at the global level successfully.