The moderating role of technological innovation and renewable energy on CO2 emission in O.E.C.D. countries: evidence from panel quantile regression approach

Abstract

This study analysed data from a panel consisting of 32 O.E.C.D. member countries for the years 1996–2020. This research explores the nexus between CO2 emissions, G.D.P. per capita, renewable energy supply, the development of patents, and gross fixed capital formation in the context of 32 O.E.C.D. countries. Also, the panel quantile regression technique is being used to investigate potential variations in heterogeneity and asymmetry. The empirical evidence shows that technological innovation negatively impacts CO2 emissions; however, the impact varies greatly between quantiles. This research also explores the potential for heterogeneity and asymmetry in the moderating effect of technological innovation with regards to economic growth and renewable energy. The investigation, which relied on the use of panel quantile regression, revealed that technological innovation exerts a wide variety of moderating effects. In conclusion, the study provided policy recommendations.