The role of eco-innovation, renewable energy consumption, economic risks, globalization, and economic growth in achieving sustainable environment in emerging market economies

Abstract

In the last two decades, environmental degradation has been a topic of concern. The rising level of CO₂ emissions (CO₂E) has adversely affected life in the E7 countries, which comprise of Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. The increased in CO₂E is the cause of rising sea levels in the E7 countries. Visibly, E7 nations which are considered as the largest emitters of CO₂ are facing the most severe environmental challenges. This study investigates the impact of eco-innovation, economic growth (EG), renewable energy consumption (REC), economic risk (ERI), and globalization on the CO₂E, using the Feasible Generalized Lease Squares (FGLS) and Panel Corrected Standard Errors (PCSE) techniques for the period 1995 to 2018. The results indicate an inverted N-shaped relationship between eco-innovation and CO₂E. Also, eco-innovation, REC, and economic risk are observed to be significant factors in abating CO₂ emissions. On the contrary, globalization and GDP are responsible for rising CO₂E in E7 countries. According to empirical estimates, eco-innovation improves the efficiency of carbon emissions, which lowers CO₂E. In addition, because they are immune to changes in the price of oil and gas and disruptions brought about by geopolitical events, renewable energy sources can offer countries a more secure energy source than fossil fuels. Alternative energy sources can reasonably cut CO₂E while offering a more reliable and secure energy source. Therefore, it is crucial that policies be put in place to cut CO₂E by giving priority to environmental innovative policies.

Keywords: Consumption-based CO2; Country Risk; Eco-Innovation; Economic globalization; Economic risk; Emerging countries; Globalization; Renewable energy consumption.