Innovating for a Greener Future: Assessing the Impact of Renewable Energy, Resource Efficiency, and Technology on CO₂ Emission Reduction

Abstract

This paper explores how CO2 is emitted in 30 developing Asian economies. Such countries differ in terms of income levels such as low, middle, and high income and the years between 1990-2022 are included in the study. It employs a powerful econometric model in which both the System Generalize Method of Moments (GMM) is used to overcome dynamic endogeneity and thoughtfully Two-Stage Least Squares (2SLS) to overcome potential reverse causality. This integrated methodology serves well to investigate the impacts of the renewable energy use, availability of natural resources and technological innovation on the level of emission.
These findings of study demonstrate a complex dynamic. There is presently a positive relationship between technological innovation and the rise in emissions, which can be attributed to the fact that technology is used to streamline the industrialization process that uses fossil fuels on a large scale. On the contrary, renewable energy and natural resources also contribute to the decrease of CO2 emission. One of the biggest revelations is that production-oriented industrialization, particularly, after the initiation of China in the WTO in 2001, has contributed greatly to the growth in the world emissions. Since in most cases, the area lacks powerful and effective environmental laws, this study emphasizes the necessity of modifications in the policy. The steps such as moving the green innovation technology and introducing the price on the carbon are crucial to uncoupling economic growth and emissions and creating an efficient global climate policy