Journal Article

Environmental pollution and energy research and development: an Environmental Kuznets Curve model through quantile simulation approach

Bilgili, Faik, Nathaniel, Solomon Prince, Kassouri, Yacouba, Kuşkaya, Sevda

2021

Overview

Energy research and development (R&D) and environmental sustainability is often referred to as two interrelated trends, especially in the current context of the 4 th industrial revolution. As a primary input of energy innovations, R&D in the energy sector constitutes a vital tool in addressing global environmental and energy challenges. In this frame, we observe the effects of disaggregated energy R&D on environmental pollution within the Environmental Kuznets Curve (EKC) framework in thirteen developed countries over the period 2003–2018. By employing the panel quantile regression technique, we find an inverted U-shaped nexus between economic growth and carbon emissions only in higher carbon-emitting countries, thus, confirming the EKC hypothesis. However, the U-shaped nexus is more predominant in lower carbon-emitting countries. As such, we demonstrate that there is not any single dynamic in the relationship between economic growth and pollution as reported in previous studies. Contrary to expectations, we find that energy efficiency research and development is more effective in curbing carbon emissions compared to fossil fuels and renewable energy research and development. The empirical results indicate also that only energy efficiency R&D mitigates significantly the CO 2 emissions from the 50 th quantile up to 90 th quantile, although the magnitude of the negative sign is more pronounced (in absolute term) at the highest quantile (90th). In this light, our findings would guide policymakers in the establishment of sustainable energy research and development schemes that will allow the preservation of equilibrium for the environment while also promoting energy innovations.

• Publisher: Springer Berlin Heidelberg,Springer Nature B.V
• Subject: Aquatic Pollution / Carbon / Carbon dioxide / Carbon dioxide emissions / Developed countries / Earth and Environmental Science / Economic development / Economic growth / Economics / Ecotoxicology / Emissions / Energy efficiency / Energy industry / Energy research / Environment / Environmental Chemistry / Environmental Health / Environmental Kuznets curve / Environmental pollution / Environmental science / Fossil fuels / Innovations / pollution / R&D / regression analysis / Renewable energy / renewable energy sources / Research & development / research and development / Research Article / Sustainable development / Sustainable energy / Waste Water Technology / Water Management / Water Pollution Control