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Role of economic growth and innovative technologies in the outlook of energy and environmental efficiency: a way forward for developing Asian economies. | LitMetric
Energy consumption is widely regarded as the primary driver of economic development and environmental degradation. The current study examines how energy use is related to technological innovation, human resources, energy pricing, economic development, and trade openness. For this context, the data set of OECD economies' indicators as mentioned above has been compiled for the period 1991-2019. Three estimators were used in this study from the family of autoregressive distributed lag (ARDL): the mean group (MG), the dynamic fixed effect (DFE), and the pooled mean group (PMG). According to empirical research, technical advances, human resources, and energy pricing all have a negative impact on OECD countries' long-run energy consumption. In the short term, however, these variables have a negligible or inverse effect on energy consumption. On the other hand, economic growth and trade openness in OECD economies all contribute positively to energy demand in the short and long run. Based on the empirical findings, this study recommends a policy structure for emerging economies.
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