Do technology usage and innovation promote an environmental friendly economy? Evidence from selected 30 Asian economies

Abstract

Rapid economic expansion across Asia has exacerbated environmental challenges, raising concerns about balancing economic growth with sustainability. Addressing this dilemma, the study investigates the impact of technology usage and innovation on environmental and economic efficiency in 30 Asian economies. Using Data Envelopment Analysis (DEA), efficiency scores are calculated and integrated into an Environmental Kuznets Curve (EKC) model. The findings show that while technological advancements improve economic efficiency, their environmental benefits appear only after surpassing a critical economic threshold, estimated at approximately $14,900 per capita. Additionally, achieving high economic efficiency alone does not guarantee environmental sustainability unless innovation strategies specifically align with green growth. This study contributes to sustainable development literature by emphasizing innovation-driven policies necessary for balancing economic growth with environmental protection, providing policymakers with empirical guidance for technology-based sustainability strategies.