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Does technology advancement reduce aggregate carbon dioxide emissions? Evidence from 66 countries with panel
Ruzi Li1, Lin Lin2, Lei Jiang3
1School of Management & Economics, Nanchang University, Nanchang, Jiangxi, China.
Environmental Science and Pollution Research International
|January 6, 2021
Summary
Technology advancement impacts carbon dioxide (CO2) emissions non-linearly, with effects varying by economic development level. The relationship shifts from positive to negative as economies develop, differing across nations.
Area of Science:
- Environmental Science
- Economics
- Technology Studies
Background:
- Existing research overlooks economic development's role in technology's impact on CO2 emissions.
- The relationship between technological progress and carbon dioxide (CO2) emissions is complex and debated.
Purpose of the Study:
- To investigate the non-linear and marginal effects of technology advancement on CO2 emissions.
- To analyze how economic development levels and country-specific factors influence this relationship.
Main Methods:
- Utilized a panel threshold regression model.
- Analyzed data considering economic development levels and country heterogeneity.
Main Results:
- A non-linear, inverted U-shaped relationship exists between technology advancement and CO2 emissions, moderated by economic development.
- Impacts vary significantly: inverted U-shaped in OECD countries, N-shaped in high-income non-OECD countries.
- In middle- and low-income nations, technology advancement increases CO2 emissions, but at a decreasing marginal rate.
Conclusions:
- Technology's influence on CO2 emissions is dynamic and contingent on economic development.
- Findings inform policymakers about nuanced global climate change mitigation strategies and differentiated responsibilities.
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