ENVIRONMENTAL STABILITY, TECHNOLOGICAL INNOVATION AND SUSTAINABLE DEVELOPMENT: AN EMPIRICAL ANALYSIS UNDER EKC HYPOTHESIS FRAMEWORK

Abstract

How to achieve sustainable development through technological innovations with a less damaging impact on environmental degradation? This is an important research question among academics, scholars and policymakers. As per 2030 Agenda for sustainable development, which contains 17 Sustainable Development Goals (SDGs) and their 169 sub-goals equally focus on the economic, social and environmental goals of sustainable development (UN SDGs, 2015). This study investigates the impact of technological innovation on reducing environmental degradation. Particularly, we try to examine a causal link between environmental degradation, growth and technological innovation. Using unbalanced data for 2016 countries over the period 1960-2020, this study finds that the relationship between environmental degradation and technological innovation is non-linear, confirming a U-shaped relationship between CO2 and innovation. In sum, this paper provides valuable advice to policymakers especially in the developing world concerning environmental policies formulatio