How does biased technological progress affect haze pollution? Evidence from APEC economies

Area of Science:

• Environmental Economics
• Energy Policy
• Technological Progress Analysis

Background:

• Biased technological progress influences energy conservation and emission reduction by altering the marginal rate of substitution.
• Understanding the specific impacts of different types of technological progress on environmental quality is crucial for effective policy-making.

Purpose of the Study:

• To introduce renewable energy into a production function and propose a method for identifying biased technological progress.
• To analyze the effect of biased technological progress on particulate matter (PM2.5) pollution in Asia-Pacific Economic Cooperation (APEC) economies.

Main Methods:

• Utilized a panel dataset for APEC economies spanning from 2000 to 2017.
• Applied marginal productivity theory to identify biased technological progress characteristics.
• Investigated the relationship between different types of technological progress (input, output, neutral) and PM2.5 concentrations.

Main Results:

• Input biased technological progress was found to increase non-renewable energy use and aggravate haze pollution, though this effect diminished at higher PM2.5 levels.
• Output biased technological progress reduced haze pollution in high-income economies but increased it in low-income economies.
• Neutral technological progress had an effect opposite to output biased progress, and specific mitigation strategies were identified for each bias type.

Conclusions:

• Increasing renewable energy consumption is key for input biased technological progress to mitigate haze pollution.
• Reducing energy intensity is an effective path for output biased technological progress to reduce haze pollution.
• Improving total factor productivity is crucial for neutral technological progress to mitigate haze pollution, with policy recommendations provided for APEC economies.