The Impact of Innovation Technology on Carbon Emissions in India

Abstract

Numerous studies have examined the determinants of CO2 emission. However, earlier research has neglected to analyse the emission of CO2 resulting from the exchange of innovation technology. The present work contributes to the research stream by examin-ing the relationship between innovation technology and environmental degradation in India from 1980 to 2021 during the time period of study. On the basis of the Auto Regressive Distributive Lag (ARDL) model and the Vector Error Correction (VECM) Granger Causality approach, the main finding is that innovation technologies are the primary contributors to India’s long-term CO2 emission. Short-term causality emerges from one-way causation between innovation technology and CO2 emissions. Addi-tionally, a long-term feedback hypothesis between energy usage and CO2 emissions is rejected. Numerous critical tests are conducted to assure the stability of the model and the dependability of policy-relevant conclusions. This study proposes that the Indian government should invest more in research and development to increase its innovative technological power, which would be beneficial for environmental protection.