Linking among economic growth, technology innovation, carbon dioxide emissions in Vietnam: evidence from three stage least squares models

Abstract

To accomplish the goal of net emissions to ‘zero’ by 2050 while maintaining growth in Vietnam, interrelationship among technological innovation (TI), growth and emissions need to be considered. The goal of this research is to evaluate the bidirectional causality linkages among TI, growth and CO2 emissions (CO2E) in Vietnam over the period of 1990–2021 by using the simultaneous equation model with the three-stage least squares models. Empirical results show the existence of bidirectional causality among growth, CO2 emissions and TI. Specifically, growth positively influence on carbon emissions, and CO2 emissions affect on growth positively. Furthermore, innovation positively influences on growth, while growth positively impact on innovation. There is a negative link among innovation and carbon emissions. Implying that innovation negatively effect on CO2 emissions and carbon emissions has a negative influence on innovation. Findings indicate that growth contributes to environmental pollution in Vietnam, and technology innovation is an important factor for promoting economic growth and protecting the environment. Therefore, policymakers should encourage technology innovation for the advancement of clean energy, and apply advanced techniques in production to save fuel, contribute to protect the environment by reducing emissions.