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Revealing the effectiveness of technological innovation shocks on CO2 emissions in BRICS: emerging challenges and
Xiaoqiang Ma1, Asma Arif2, Prabjot Kaur3
1School of Economics and Management, Northwest University, Xi'an, China.
Abstract:
The debate on technological innovation shocks and its effect on the environment are of great interest to academicians and environmentalists worldwide. At present, primary focus of this research is to investigate the asymmetric technology shocks and its impact on CO2 emissions for BRICS economies. The linear and non-linear panel ARDL models are applied to compute both short-run and long-run dynamics of technology shocks and CO2 emissions. Asymmetric estimates confer that a positive shock in patents reduces the CO2 emissions by 0.418%, whereas negative shock increases the CO2 emissions by 0.854%. Contrariwise, the trademark positive shock increases the carbon emissions by 0.416% and vice versa. The non-linear analysis provides an opportunity to measure the direction and magnitude of positive and negative shocks in technology on the environmental quality of BRICS economies. Hence, policymakers and environmentalists should devise their strategies by keeping in mind the impacts of positive and negative shocks.
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