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Environmental degradation, economic growth, and energy innovation: evidence from European countries

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Abstract

This study aims to explore the relationship of environmental degradation with economic growth and energy innovation by utilizing the panel data of 33 European countries by covering the period of 1996 to 2017. We use the cross-sections independence and control the heterogeneity between cross-sections by using the second-generation econometric of panel data. The Westerlund bootstrap co-integration, CIPS unit root test, Pedroni co-integration, panel causality techniques, and FMOLS have been used to analyze the relationship. The result of the study shows that all the variables are integrated in the long run. Energy innovation has a negative and significant impact on environmental degradation. On the other hand, gross domestic product has a U-shape and significant relationship with environmental degradation by supporting Kuznets curve. Therefore, this study helps not only the policymaker and government but also the people and businessmen on how they can increase the growth of the business and economy without effecting the environment.

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Authors and Affiliations

  1. Department of Accounting & Finance, Institute of Business Management, Karachi, Pakistan

    Muhammad Ali

  2. Department of Management Sciences, IQRA University, Karachi, 75300, Pakistan

    Syed Ali Raza & Bilal Khamis

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  1. Muhammad Ali
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  2. Syed Ali Raza
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  3. Bilal Khamis
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Correspondence to Muhammad Ali.

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Responsible editor: Nicholas Apergis

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Ali, M., Raza, S.A. & Khamis, B. Environmental degradation, economic growth, and energy innovation: evidence from European countries. Environ Sci Pollut Res 27, 28306–28315 (2020). https://doi.org/10.1007/s11356-020-09142-z

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  • DOI: https://doi.org/10.1007/s11356-020-09142-z

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