Assessing the dynamic impacts of climate change adaptation and clean energy innovations on economic growth in OECD countries

Abstract

This paper examines whether accelerating climate change adaptation and clean energy innovations is an effective way to promote sustainable development and mitigate environmental risks. Based on this, the main purpose of this study is to investigate the potential effect of climate change adaptation and clean energy innovations with casual factors of social, political, human development, environmental, and climatic determinants as drivers of economic growth in 38 Organization for Economic Co-operation and Development (OECD) countries from 1990 to 2020. Employing the system-generalized method of moments (GMM) method, this study shows that causal factors of social, political, educational, and environmental development have a positive effect on the economic growth process. Additionally, the interaction between climate change adaptation and temperature has a constant positive impact on economic growth. The findings highlight that policymakers should thoroughly evaluate the potential impacts of the climate change adaptation process and clean energy innovations in all aspects and implement measures and approaches that promote sustainable development, increase the adoption of environmentally friendly technologies, and address the challenges posed by climate change.