Influence of environmental technologies and income on the environment in OECD member countries transitioning to low carbon societies

Abstract

This paper focuses on examining the effects of per capita environmental technology development on the load capacity factor (LCF) within the context of OECD member countries during the period spanning 1990 to 2021. To investigate these relationships, we employ the AMG estimator and FM-LS estimator. Additionally, we explore the validity of the load capacity curve for these countries and estimate the inflection points in the income per capita-environmental sustainability relationship. Our findings lead us to the conclusion that there is no significant impact of environmental technologies on environmental sustainability. Furthermore, we observe a negative influence on the development of environmental technologies, which can be attributed to the negative externalities associated with their implementation and the lack of societal adoption. Moreover, our estimations reveal an inflection point at $45,251.90 in terms of GDP per capita, beyond which the sustainability condition of the studied countries improves.

Keywords: Environmental sustainability; Environmental technologies; Load capacity curve; Load capacity factor; OECD.