Entrepreneurship and environmental sustainability in highly polluting Asian economies: the role of eco-innovation

Abstract

We aim to investigate the impact of environmental entrepreneurship and green innovations on CO2 emissions in highly polluting Asian economies. For empirical estimation, we have applied ARDL and NARDL models. In the short run, the linear estimates of environmental entrepreneurship are significant in China and India. The short-run non-linear estimates of environmental entrepreneurship are significant in the case of China, India, and Japan. Similarly, the short-run linear estimates of green innovations are significant in China, India, and Japan, whereas the non-linear estimated coefficients of green innovation appeared to be significant in India, Japan, and Russia. In the long run, the linear estimates of environmental entrepreneurship are negative and significant in three countries, namely China, Japan, and Russia. Similarly, the estimates of green innovations are negative and significant in China, India, Japan, and Russia. In the non-linear model, the estimated coefficients of positive shock in environmental entrepreneurship are significant and negative in the case of China, India, and Japan; while, the estimates of negative shock in environmental entrepreneurship are negative and significant in India only.