Exploring the nexus link of environmental technology innovation, urbanization, financial development, and energy consumption on environmental pollution: Evidence from 27 emerging economies

Fredrick Oteng Agyeman; Emmanuel Adu Gyamfi Kedjanyi; Agyemang Akwasi Sampene; Malcom Frimpong Dapaah; Abdul Razak Monto; Paul Buabeng; Guy Carlos Guimatsie Samekong

doi:10.1016/j.heliyon.2023.e16423

Exploring the nexus link of environmental technology innovation, urbanization, financial development, and energy consumption on environmental pollution: Evidence from 27 emerging economies

Heliyon. 2023 May 29;9(6):e16423. doi: 10.1016/j.heliyon.2023.e16423. eCollection 2023 Jun.

Authors

Fredrick Oteng Agyeman¹, Emmanuel Adu Gyamfi Kedjanyi², Agyemang Akwasi Sampene¹, Malcom Frimpong Dapaah³, Abdul Razak Monto⁴, Paul Buabeng⁵, Guy Carlos Guimatsie Samekong⁶

Affiliations

¹ School of Management, Jiangsu University, Zhenjiang, 212013, PR China.
² School of Computer Science, Nanjing University of Information Science and Technology, Nanjing, Jiangsu Province, 210044, PR China.
³ School of the Environment and Safety Engineering, Jiangsu University, Zhenjiang, 212013, PR China.
⁴ School of Food and Biological Engineering, Jiangsu University, Zhenjiang, Jiangsu Province, 212013, PR China.
⁵ School of Mathematics, University for Development Studies, Tamale P.O. Box TL1350, Ghana.
⁶ University of Yaoundé I, Faculty of Science, Department of Human Biology and Physiology, BP 337, Yaoundé, Central Province, Cameroon.

Abstract

The core intent of the present study seeks to probe the connection linking environmental technology innovation (ENVTI), economic growth (ECG), financial development (FID), trade openness (TROP), urbanization (URB) and energy consumption (ENC) on environmental pollution (ENVP) by employing 27 chosen African economies panel data. These variables merit critical attention when implementing decarbonization policies and significantly safeguarding a country's well-being in pursuit of massive industrialization and economic expansion. The fully modified ordinary least squares (FMOLS), the dynamic ordinary least square (DOLS), and the pooled mean group (PMG) estimation techniques were utilized to analyze the series from 2000 through 2020. This research used the FMOLS for long-run connections interaction of the variables, while the DOLS and PMG were used for robustness checks. Further, the Pedroni, Kao, and Westerlund cointegration approaches were employed to determine cointegration in the series. Also, the cross-sectional Im, Pesaran, and Shin (CIPS) and the cross-sectional augmented Dickey-Fuller (CADF) unit root testing approaches were utilized to check the stationarity of the series. Again, the stochastic impact on regression, population, affluence, and technology (STIRPAT) model, and the environmental Kuznets curve (EKC) was used as the theoretical framework supporting this research. The findings of the long-run analysis give credence to the EKC assumption demonstrating that a significant long-term ECG will support the decrease in ENVP when nations experience increases in the level of income. Further, this study found that ENVTI and URB are conducive to reducing ENVP in the long run. The current research finding is sensitive to the respective nations' income levels. This empirical research furnishes prudent policies tailored for the respective countries' pursuit of ECG and reducing ENVP.

Keywords: Economic growth; Energy consumption; Environmental pollution; Environmental technology innovation; Financial development; Trade openness.