The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries
It is assumed that technological progress plays a vital role in energy efficiency improvements when the effects of industrial restructuring, infrastructure, environmental challenges, and economic shocks seem more dubious. However, a limited number of studies have been conducted to examine the impact...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2022-09-01
|
| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17057/PPM_2022_03_Koilo.pdf |
| _version_ | 1811204009173712896 |
|---|---|
| author | Viktoriia Koilo Ola Honningdal Grytten Jan Emblemsvag |
| author_facet | Viktoriia Koilo Ola Honningdal Grytten Jan Emblemsvag |
| author_sort | Viktoriia Koilo |
| collection | DOAJ |
| description | It is assumed that technological progress plays a vital role in energy efficiency improvements when the effects of industrial restructuring, infrastructure, environmental challenges, and economic shocks seem more dubious. However, a limited number of studies have been conducted to examine the impact of technological innovation on countries’ energy efficiency levels. This study aims to explore the relationship between energy efficiency, technological innovation, and economic growth in 30 European countries by utilizing data from 2012 to 2020. To this end, a two-stage analysis is carried out. The first step involves estimating the total factor energy efficiency (TFEE) by the countries to illustrate the effects of energy parameters on economic growth and the environment, and technological innovation (TI) to estimate the innovation capability of each country by using data envelopment analysis (DEA) methodology. The second step includes a panel regression model to explore how technological innovation affects energy efficiency, considering the degree of government intervention, industrial structure, infrastructure, and economic openness.The results indicate that the bottom-15 countries, whose TFEE scores were the lowest, are mainly countries of Central and Eastern Europe. Regarding the countries’ technological capability, the results were similar, but the score was lower than the TFEE. Moreover, the regression analysis shows that a one percent increase in innovation activity contributes to an increase in energy efficiency by 0.27 percent. Hence, it confirms the notion of a positive impact of new technology on energy efficiency.
AcknowledgmentsThe study is supported by the grant from the Research Based Innovation “SFI Marine Operation in Virtual Environment (SFI-MOVE)” (Project No. 237929) in Norway. |
| first_indexed | 2024-04-12T03:04:31Z |
| format | Article |
| id | doaj.art-f1a4a991c22c435d831c26e6b178a50e |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-12T03:04:31Z |
| publishDate | 2022-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-f1a4a991c22c435d831c26e6b178a50e2022-12-22T03:50:33ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672022-09-0120344846410.21511/ppm.20(3).2022.3617057The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countriesViktoriia Koilo0https://orcid.org/0000-0001-7953-9970Ola Honningdal Grytten1https://orcid.org/0000-0003-1416-0980Jan Emblemsvag2https://orcid.org/0000-0003-2237-0283Ph.D., Associate Professor, Department of Ocean Operations and Civil Engineering, Faculty of Engineering, Norwegian University of Science and TechnologyDr Oecon, Professor, Faculty of Economics, Department of Economics, Norwegian School of EconomicsPh.D., Professor, Department of Ocean Operations and Civil Engineering, Faculty of Engineering, Norwegian University of Science and TechnologyIt is assumed that technological progress plays a vital role in energy efficiency improvements when the effects of industrial restructuring, infrastructure, environmental challenges, and economic shocks seem more dubious. However, a limited number of studies have been conducted to examine the impact of technological innovation on countries’ energy efficiency levels. This study aims to explore the relationship between energy efficiency, technological innovation, and economic growth in 30 European countries by utilizing data from 2012 to 2020. To this end, a two-stage analysis is carried out. The first step involves estimating the total factor energy efficiency (TFEE) by the countries to illustrate the effects of energy parameters on economic growth and the environment, and technological innovation (TI) to estimate the innovation capability of each country by using data envelopment analysis (DEA) methodology. The second step includes a panel regression model to explore how technological innovation affects energy efficiency, considering the degree of government intervention, industrial structure, infrastructure, and economic openness.The results indicate that the bottom-15 countries, whose TFEE scores were the lowest, are mainly countries of Central and Eastern Europe. Regarding the countries’ technological capability, the results were similar, but the score was lower than the TFEE. Moreover, the regression analysis shows that a one percent increase in innovation activity contributes to an increase in energy efficiency by 0.27 percent. Hence, it confirms the notion of a positive impact of new technology on energy efficiency. AcknowledgmentsThe study is supported by the grant from the Research Based Innovation “SFI Marine Operation in Virtual Environment (SFI-MOVE)” (Project No. 237929) in Norway.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17057/PPM_2022_03_Koilo.pdfdata envelopment analysiseconomic growthenergy efficiencyinnovation capability |
| spellingShingle | Viktoriia Koilo Ola Honningdal Grytten Jan Emblemsvag The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries Problems and Perspectives in Management data envelopment analysis economic growth energy efficiency innovation capability |
| title | The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries |
| title_full | The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries |
| title_fullStr | The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries |
| title_full_unstemmed | The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries |
| title_short | The interplay between technological innovation, energy efficiency, and economic growth: Evidence from 30 European countries |
| title_sort | interplay between technological innovation energy efficiency and economic growth evidence from 30 european countries |
| topic | data envelopment analysis economic growth energy efficiency innovation capability |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/17057/PPM_2022_03_Koilo.pdf |
| work_keys_str_mv | AT viktoriiakoilo theinterplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries AT olahonningdalgrytten theinterplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries AT janemblemsvag theinterplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries AT viktoriiakoilo interplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries AT olahonningdalgrytten interplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries AT janemblemsvag interplaybetweentechnologicalinnovationenergyefficiencyandeconomicgrowthevidencefrom30europeancountries |