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Can green technology reduce carbon dioxide emissions? Evidence from G7 and BRICS countries
1Department of Electronic Commerce, Zhejiang Business College, Hangzhou, 310053, China.
Abstract:
This study estimates the impact of green technology innovation and its interaction terms on CO2 emission, by using the random and fixed effect estimate method, employs panel data of the G7 and BRICS countries from 1990 to 2019. The regression results show that a single type of green technological innovation has not a significant inhibitory effect on CO2 emissions. The interaction of the two types of green technological innovations has a significant effect on the decrease of CO2. Moreover, the study test the difference effect of green technological innovations on CO2 emission among the G7 and BRICS countries. Furthermore, we also choose appropriate instrument variables to deal with the endogenesis of the model and examine model robustness. The findings demonstrate that the empirical conclusions can hold true in the test. Based on the findings above, we puts forward a few policy recommendations for G7 countries and BRICS countries to reduce carbon dioxide emissions.
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