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Dynamic common correlated effects of technological innovations and institutional performance on environmental quality: Evidence from East-Asia and Pacific countries
Environmental Science & Policy ( IF 4.9 ) Pub Date : 2021-07-10 , DOI: 10.1016/j.envsci.2021.07.007
Imran Sharif Chaudhry 1 , Sajid Ali 1 , Shaukat Hussain Bhatti 2 , Muhammad Khalid Anser 3 , Ahmad Imran Khan 4 , Raima Nazar 5
Affiliation  

Human activities in the form of technological innovations and institutional performance are degrading environmental quality all over the world by rising the greenhouse gas (GHG) emissions and ecological footprint. The role of technological innovations and institutional performance in environmental quality has not been comprehensively explored while taking into account the cross-sectional dependence between the countries. The study analyzes the dynamic common correlated effects of technological innovations and institutional performance on environmental quality by using the panel data of East-Asia and Pacific countries for the year 1995−2018. Different proxies of greenhouse gas emissions, as well as a new indicator, ‘ecological footprint’ are used to measure environmental quality. Similarly, the technological innovations index is obtained by using six different innovative indicators. Traditional methodologies overlook the issues of heterogeneity and cross-sectional dependence and give spurious outcomes. A novel econometric methodology, ‘dynamic common correlated effects (DCCE)’, is employed, which addresses the above-mentioned issues. Long-run estimation confirms that technological innovations indicate a significant and negative association with N2O, CH4, and ecological footprint and a positive relationship with CO2 emissions in lower-income and overall East-Asia and Pacific countries. However, technological innovations are positively correlated with all environmental indicators in higher-income East-Asia and Pacific countries. In the long-run, a significant and negative impact of institutional performance is observed on environmental indicators in overall and higher-income East-Asia and Pacific countries. Finally, it is suggested that if East-Asia and Pacific countries support innovative activities, strengthen their institutes and support open trade policies, then they will be able to ensure environmental sustainability.



中文翻译:

技术创新和制度绩效对环境质量的动态共同相关影响:来自东亚和太平洋国家的证据

以技术创新和制度绩效为形式的人类活动正在通过增加温室气体 (GHG) 排放和生态足迹来降低世界各地的环境质量。技术创新和制度绩效在环境质量中的作用还没有在考虑到国家间的横截面依赖的情况下得到全面探索。该研究利用东亚和太平洋国家1995-2018年的面板数据分析了技术创新和制度绩效对环境质量的动态共同相关影响。温室气体排放的不同代表以及新指标“生态足迹”用于衡量环境质量。相似地,技术创新指数是通过六种不同的创新指标得出的。传统方法忽略了异质性和横截面依赖性问题,并给出了虚假的结果。采用了一种新的计量经济学方法,即“动态共同相关效应(DCCE)”,它解决了上述问题。长期估计证实,技术创新表明与 N 显着负相关2 O、CH 4和生态足迹以及与低收入和整个东亚和太平洋国家的CO 2排放量呈正相关。然而,在高收入的东亚和太平洋国家,技术创新与所有环境指标呈正相关。从长远来看,机构绩效对整体和高收入东亚和太平洋国家的环境指标产生了显着的负面影响。最后,建议东亚和太平洋国家如果支持创新活动,加强其机构并支持开放的贸易政策,那么它们将能够确保环境的可持续性。

更新日期:2021-07-12
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