Econometric analysis of the effects of globalization, technology innovation and renewable energy consumption on CO2 emissions: Evidence from top five CO2 -emitting countries
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Abstract
Introduction: Anthropogenic CO2 emission is a pressing global challenge wreaking serious health, environmental and socioeconomic havocs which require urgent attention. Given these undesirable outcomes and the enormous contribution of some set of countries to global CO2 emissions; this study investigated the effects of globalization, technology innovation and renewable energy consumption on CO2 emissions in top 5 CO2-emitting countries across the globe.
Materials and Methods: To achieve the study objective, annual CO2 emission, globalization, technology innovation, renewable energy and economic growth data of the top 5 CO2-emitting countries spanning from 1990 to 2022 was analysed using panel autoregressive distributed lag modelling technique and Dumitrescu-Hurlin panel causality test.
Results: Findings revealed existence of long-run relationship among CO2 emission, globalization, technology innovation, renewable energy consumption and economic growth in top 5 CO2-emitting countries. Particularly, renewable energy consumption was found to have negative effect on CO2 emission while globalization and technology innovation were found to have positive direct effects on CO2 emission. However, the interaction effect of globalization and technology innovation on CO2 emissions was found to be negative. Findings also revealed mutually reinforcing causal relationship between economic growth and CO2 emission; and between technology innovation and CO2 emission.
Conclusion: The findings underscore the fact that urgent prioritisation of renewable energy consumption and international relationships which encourage the transfer, development and adoption of environment-friendly technological innovations will reduce CO2 emission and its undesirable environmental, health and socioeconomic effects in top 5 CO2-emitting countries.
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technology and renewable technology adoption on energy efficiency and carbon emissions reduction in Indonesian manufacturing companies. West Science Interdisciplinary Studies. 2023;1(11):1175-83.
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integration, industrial application, and globalization. Cleaner Engineering and Technology. 2023 Aug 1;15:100657. Available at: https://www.sciencedirect.com/science/article/pii/S266679082300 0629
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foreign direct investment linkage for sustainable development in the E7 economies: Revisiting the pollution haven hypothesis. International Social Science Journal. 2022 Mar;72(243):91-110. Available at: https://acikerisim.gelisim.edu.tr/server/api/core/bitstreams/64bcae07-deef-44dd-b047-e25ee58b8d54/content
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institutions and globalization on environmental pollution for open and closed economies. Quality & Quantity. 2024 Oct;58(5):4353-81. Available at: https://link.springer.com/article/10.1007/s11135-024-01859-0
18. Zeng S, Li T, Wu S, Gao W, Li G. Does green technology progress have a significant impact on
carbon dioxide emissions?. Energy Economics. 2024 May 1;133:107524. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0140988324002329
19. Li S, Yu Y, Jahanger A, Usman M, Ning Y. The impact of green investment, technological
innovation, and globalization on CO2 emissions: evidence from MINT countries. Frontiers in Environmental Science. 2022 Mar 22;10:868704. Available at: https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.868704/full
20. Chen H, Yi J, Chen A, Peng D, Yang J. Green technology innovation and CO2 emission in
China: Evidence from a spatial-temporal analysis and a nonlinear spatial durbin model. Energy Policy. 2023 Jan 1;172:113338. Available at: https://www.sciencedirect.com/science/arti cle/abs/pii/S0301421522005572
21. Lin B, Ma R. Green technology innovations, urban innovation environment and CO2 emission
reduction in China: Fresh evidence from a partially linear functional-coefficient panel model. Technological Forecasting and Social Change. 2022 Mar 1;176:121434. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0040162521008659
22. Awosusi AA, Ozdeser H, Ojekemi OS, Adeshola I, Ramzan M. Environmental sustainability in
Vietnam: evaluating the criticality of economic globalisation, renewable energy, and natural resources. Environmental Science and Pollution Research. 2023 Jun;30(30):75581-94. Available at: https://link.springer.com/article/10.1007/s11356-023-27683-x
23. Naimoğlu M, Akal M. Relationship Between Economic Complexity, Globalization, Energy
Sources and Environmental Sustainability. Politická ekonomie. 2024 Dec 13;72(6):985-1013. Available at: https://polek.vse.cz/artkey/pol-202406-0006_relationship-between-economic-complex ity-globalization-energy-sources-and-environmental-sustainability.php
24. Jahanger A, Usman M, Balsalobre‐Lorente D. Autocracy, democracy, globalization, and
environmental pollution in developing world: fresh evidence from STIRPAT model. Journal of Public Affairs. 2022 Nov;22(4):e2753. Available at: https://onlinelibrary.wiley.com/doi/ abs/10.1002/pa.2753
25. Obobisa ES, Chen H, Mensah IA. The impact of green technological innovation and
institutional quality on CO2 emissions in African countries. Technological Forecasting and Social Change. 2022 Jul 1;180:121670. Available at: https://www.sciencedirect.com/science/article /abs/pii/S0040162522002025
26. Bilal A, Li X, Zhu N, Sharma R, Jahanger A. Green technology innovation, globalization, and
CO2 emissions: recent insights from the OBOR economies. Sustainability. 2021 Dec 27;14(1):23-36. Available at: https://www.mdpi.com/2071-1050/14/1/236
27. Nawaz A, Rahman SU, Zafar M, Ghaffar M. Technology innovation-institutional quality on
environmental pollution nexus from E-7 nations: Evidence from panel ARDL cointegration approach. Review of Applied Management and Social Sciences. 2023 Jun 19;6(2):307-323. Available at: https://www.ramss.spcrd.org/index.php/ramss/article/view/329
28. Lee HS, Kuang KS, Ooi BC, Har WM. The Heterogenous Impact of R&D and Green Innovation
on Carbon Emissions in Europe. In2024 IEEE 14th Symposium on Computer Applications & Industrial Electronics (ISCAIE). 2024 May 24 (pp. 270-275). IEEE. Available at: https://ieeexplore.ieee.org/abstract/document/10576397/
29. Manzoor L, Piracha Q, Rahman SU, Sheikh SM. Impact of Renewable Energy and
Globalization on Environmental Pollution in Asian Countries: A Review. Bulletin of Business and Economics (BBE). 2023;12(4):628-633. Available at: https://ideas.repec.org/a/rfh/bbejor/v12y2 023i4p628-633.html
30. Aslan M. Does Globalization Increase Environmental Pollution? Evidence from Turkey.
Fiscaoeconomia. 2023;7(2):1309-33. Available at: https://www.ceeol.com/search/article-detail? id=1134530
31. Tang J. Combing effects of economic development and globalization towards energy efficiency
and environmental degradation: Fresh analysis from energy efficient resources. Frontiers in Energy Research. 2022 Mar 18;10:847235. Available at: https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2022.847235/full
32. Harahap MI. The impact of Islamic finance, economic growth, and globalization on CO2
emissions. Jurnal Ekonomi. 2024 Mar 28;29(1):127-46. Available at: http://ecojoin.org/index .php/EJE/article/view/2094
33. Chen Y, Lee CC. Does technological innovation reduce CO2 emissions? Cross-country
evidence. Journal of Cleaner Production. 2020 Aug 1;26(3):121-140. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0959652620315973
34. Bilal A, Li X, Zhu N, Sharma R, Jahanger A. Green technology innovation, globalization, and CO2 emissions: recent insights from the OBOR economies. Sustainability. 2021 Dec 27;14(1):1-17. Available at: https://www.mdpi.com/2071-1050/14/1/236
conservation in Nigeria. Zoologist. 2022 Nov 24; 20(1):41-50. Available at: https://www.un.org/en/climatechange/what-is-climate-change.
2. United Nations. What is climate change? [Accessed on: 2025 April 15]. Available at: https://ww
w.un.org/en/climatechange/what-is-climate-change.
3. Intergovernmental Panel on Climate Change. Climate change: The physical science basis.
[Accessed on: 2025 May 15]. Available at: https://www.ipcc.ch/report/ar6/wg1/
4. Environmental Protection Agency. What are the trends in greenhouse gas emissions and
concentrations and their impacts on human health and environment? [Accessed on: 2025 May 20]. Available at: https://www.epa.g ov/report-environment/greenhouse-gases
5. Intergovernmental Panel on Climate Change. Intergovernmental Panel on Climate Change
Working Group III report: Mitigation of climate change, summary for policymakers. [Accessed on: 2025 May 1]. Available at: https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WG III_SummarForPolicymakers.pdf
6. Hale T. Transnational actors and transnational governance in global environmental politics.
Annual Review of Political Science. 2020 May 11; 23(1):203-220. Available at: https://www.annual reviews.org/deliver/fulltext/polisci/23/1/annurev-polisci-050718-032644.pdf?itemId=/content /journals/10.1146/annurev-polisci-050718-032644&mimeType=application/pdf
7. United Nations. Sustainable development goal 17 targets and indicators. 2015. [Accessed on:
2025 April 30]. Available at: https://sdgs.un.org/goals/ goal17#targets_and_indicators
8. Su CW, Xie Y, Shahab S, Faisal CM, Hafeez M, Qamri GM. Towards achieving sustainable
development: Role of technology innovation, technology adoption and CO2 emission for BRICS. International Journal of Environmental Research and Public Health. 2021 Jan;18(1):1-13. Available at: https://www.mdpi.com/1660-4601/18/1/277
9. Rusmayadi G, Salawati U, Haslinah A, Judijanto L. The effect of investment in green
technology and renewable technology adoption on energy efficiency and carbon emissions reduction in Indonesian manufacturing companies. West Science Interdisciplinary Studies. 2023;1(11):1175-83.
10. United Nations. Sustainable development goal 15 targets and indicators. 2015. [Accessed on:
2025 April 30]. Available at: https://sdgs.un.org/goals/ goal15#targets_and_indicators.
11. Trinh VL, Chung CK. Renewable energy for SDG-7 and sustainable electrical production,
integration, industrial application, and globalization. Cleaner Engineering and Technology. 2023 Aug 1;15:100657. Available at: https://www.sciencedirect.com/science/article/pii/S266679082300 0629
12. Abid M, Alimi M. Stochastic convergence in US disaggregated gas consumption at the sector
level. Journal of Natural Gas Science and Engineering. 2019 Jan 1;61:357-68.
13. Bloomberg New Energy Finance. Energy Transition Investment Trends. [Accessed on: 2025
March 30]. Available at: https://assets.bbhub.io/professional/sites/24/951623_BNEEnergy-TransitionTrends-2025-Abridged.pdf
14. Huber J. Towards industrial ecology: sustainable development as a concept of ecological modernization. Journal of Environmental Policy and Planning. 2000 Dec 1;2(4):269-85.
15. Gyamfi BA, Bein MA, Udemba EN, Bekun FV. Renewable energy, economic globalization ans
foreign direct investment linkage for sustainable development in the E7 economies: Revisiting the pollution haven hypothesis. International Social Science Journal. 2022 Mar;72(243):91-110. Available at: https://acikerisim.gelisim.edu.tr/server/api/core/bitstreams/64bcae07-deef-44dd-b047-e25ee58b8d54/content
16. Li R, Wang Q. Does renewable energy reduce per capita carbon emissions and per capita
ecological footprint? New evidence from 130 countries. Energy Strategy Reviews. 2023 Sep 1;49:101121. Available at: https://www.sciencedirect.com/science/article/pii/S2211467X23000718
17. Gyamfi BA, Agozie DQ, Ali EB, Bekun FV, Asongu SA. Assessment of the influence of
institutions and globalization on environmental pollution for open and closed economies. Quality & Quantity. 2024 Oct;58(5):4353-81. Available at: https://link.springer.com/article/10.1007/s11135-024-01859-0
18. Zeng S, Li T, Wu S, Gao W, Li G. Does green technology progress have a significant impact on
carbon dioxide emissions?. Energy Economics. 2024 May 1;133:107524. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0140988324002329
19. Li S, Yu Y, Jahanger A, Usman M, Ning Y. The impact of green investment, technological
innovation, and globalization on CO2 emissions: evidence from MINT countries. Frontiers in Environmental Science. 2022 Mar 22;10:868704. Available at: https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.868704/full
20. Chen H, Yi J, Chen A, Peng D, Yang J. Green technology innovation and CO2 emission in
China: Evidence from a spatial-temporal analysis and a nonlinear spatial durbin model. Energy Policy. 2023 Jan 1;172:113338. Available at: https://www.sciencedirect.com/science/arti cle/abs/pii/S0301421522005572
21. Lin B, Ma R. Green technology innovations, urban innovation environment and CO2 emission
reduction in China: Fresh evidence from a partially linear functional-coefficient panel model. Technological Forecasting and Social Change. 2022 Mar 1;176:121434. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0040162521008659
22. Awosusi AA, Ozdeser H, Ojekemi OS, Adeshola I, Ramzan M. Environmental sustainability in
Vietnam: evaluating the criticality of economic globalisation, renewable energy, and natural resources. Environmental Science and Pollution Research. 2023 Jun;30(30):75581-94. Available at: https://link.springer.com/article/10.1007/s11356-023-27683-x
23. Naimoğlu M, Akal M. Relationship Between Economic Complexity, Globalization, Energy
Sources and Environmental Sustainability. Politická ekonomie. 2024 Dec 13;72(6):985-1013. Available at: https://polek.vse.cz/artkey/pol-202406-0006_relationship-between-economic-complex ity-globalization-energy-sources-and-environmental-sustainability.php
24. Jahanger A, Usman M, Balsalobre‐Lorente D. Autocracy, democracy, globalization, and
environmental pollution in developing world: fresh evidence from STIRPAT model. Journal of Public Affairs. 2022 Nov;22(4):e2753. Available at: https://onlinelibrary.wiley.com/doi/ abs/10.1002/pa.2753
25. Obobisa ES, Chen H, Mensah IA. The impact of green technological innovation and
institutional quality on CO2 emissions in African countries. Technological Forecasting and Social Change. 2022 Jul 1;180:121670. Available at: https://www.sciencedirect.com/science/article /abs/pii/S0040162522002025
26. Bilal A, Li X, Zhu N, Sharma R, Jahanger A. Green technology innovation, globalization, and
CO2 emissions: recent insights from the OBOR economies. Sustainability. 2021 Dec 27;14(1):23-36. Available at: https://www.mdpi.com/2071-1050/14/1/236
27. Nawaz A, Rahman SU, Zafar M, Ghaffar M. Technology innovation-institutional quality on
environmental pollution nexus from E-7 nations: Evidence from panel ARDL cointegration approach. Review of Applied Management and Social Sciences. 2023 Jun 19;6(2):307-323. Available at: https://www.ramss.spcrd.org/index.php/ramss/article/view/329
28. Lee HS, Kuang KS, Ooi BC, Har WM. The Heterogenous Impact of R&D and Green Innovation
on Carbon Emissions in Europe. In2024 IEEE 14th Symposium on Computer Applications & Industrial Electronics (ISCAIE). 2024 May 24 (pp. 270-275). IEEE. Available at: https://ieeexplore.ieee.org/abstract/document/10576397/
29. Manzoor L, Piracha Q, Rahman SU, Sheikh SM. Impact of Renewable Energy and
Globalization on Environmental Pollution in Asian Countries: A Review. Bulletin of Business and Economics (BBE). 2023;12(4):628-633. Available at: https://ideas.repec.org/a/rfh/bbejor/v12y2 023i4p628-633.html
30. Aslan M. Does Globalization Increase Environmental Pollution? Evidence from Turkey.
Fiscaoeconomia. 2023;7(2):1309-33. Available at: https://www.ceeol.com/search/article-detail? id=1134530
31. Tang J. Combing effects of economic development and globalization towards energy efficiency
and environmental degradation: Fresh analysis from energy efficient resources. Frontiers in Energy Research. 2022 Mar 18;10:847235. Available at: https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2022.847235/full
32. Harahap MI. The impact of Islamic finance, economic growth, and globalization on CO2
emissions. Jurnal Ekonomi. 2024 Mar 28;29(1):127-46. Available at: http://ecojoin.org/index .php/EJE/article/view/2094
33. Chen Y, Lee CC. Does technological innovation reduce CO2 emissions? Cross-country
evidence. Journal of Cleaner Production. 2020 Aug 1;26(3):121-140. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0959652620315973
34. Bilal A, Li X, Zhu N, Sharma R, Jahanger A. Green technology innovation, globalization, and CO2 emissions: recent insights from the OBOR economies. Sustainability. 2021 Dec 27;14(1):1-17. Available at: https://www.mdpi.com/2071-1050/14/1/236
| Files | ||
| Issue | Vol 10 No 4 (2025): Autumn 2025 | |
| Section | Original Research | |
| DOI | https://doi.org/10.18502/japh.v10i4.20614 | |
| Keywords | ||
| Carbon emission; Globalization; Green technology innovation; Renewable energy consumption | ||
| Rights and permissions | |
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
How to Cite
1.
Isayomi A, Akomolafe KJ, Danladi JD. Econometric analysis of the effects of globalization, technology innovation and renewable energy consumption on CO2 emissions: Evidence from top five CO2 -emitting countries. JAPH. 2025;10(4):469-486.
