Technological Innovation and Green Growth: Evidence from South Asia

Abstract Green growth means promote economic development and growth, while certify that natural assets continue to provide the resources and ecological. This research analyzes that how green growth is affected by technological innovation for South Asia (Bangladesh, Pakistan, India, Sri Lanka, and Nepal) economies during 1990 to 2019. Basic econometric tests such as Cross-section dependence test, Panel unit root tests and Wester Lund co-integration test is applied. Furthermore, we use the FMOLS and DOLS models for estimating the impact of CO2 emissions on patent by resident, renewable energy consumption, foreign direct investment, and GDP per capita. The results of all panel unit root tests reveal that all the variables are stationary at a 1st difference. Westerlund panel co-integration test confirmed the long-run relationship. In both the FMOLS and DOLS models, the findings show that patent application by residents and renewable energy consumption have negative and statistically significant impacts on CO2 emissions. While GDP has positive and statistically significant effect on CO2 emissions and FDI has no effect on CO2 emissions in both the long run and short run. The results recommend that government needs to take sustainable energy related source, for instance, renewable energy consumption which are beneficial to ecosystem as it increases green economy.