Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions
Recently, sustainable economic growth has taken the front line of the global development agenda. The common dependency on fossil fuel energy, greenhouse gas (GHG) emissions and the continuous rising demands for energy have posed challenges that put the world in a climate change trap. This work empir...
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| Format: | Article |
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MDPI AG
2021-03-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/6/1757 |
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| author | Elyas Abdulahi Mohamued Masood Ahmed Paula Pypłacz Katarzyna Liczmańska-Kopcewicz Muhammad Asif Khan |
| author_facet | Elyas Abdulahi Mohamued Masood Ahmed Paula Pypłacz Katarzyna Liczmańska-Kopcewicz Muhammad Asif Khan |
| author_sort | Elyas Abdulahi Mohamued |
| collection | DOAJ |
| description | Recently, sustainable economic growth has taken the front line of the global development agenda. The common dependency on fossil fuel energy, greenhouse gas (GHG) emissions and the continuous rising demands for energy have posed challenges that put the world in a climate change trap. This work empirically analyzes the effect of innovation, oil price, oil price volatility and economic growth on GHG emissions over the period of 1991–2015. The study compares the emission level between European Union countries (EU) (26), oil-producing countries (22), China and the United States of America (USA) using the Driscoll–Kraay model. The main empirical finding points to a positive effect of innovation on GHG emission reduction initiatives in oil-importing economies. Particularly, EU countries significantly minimized emissions due to innovation, followed by China and the USA. Contrarily, the effect of innovation increases GHG emission in oil-exporting economies. The results also indicate broader significant effects of oil price and oil price volatility on GHG emission. Interestingly, the effect of oil price on GHG emission is asymmetrical between oil-exporting and -importing economies. Oil price increases in oil-importing countries decrease GHG emission; contrarily, its effect increases emissions in oil-exporting countries. Thus, oil-exporting countries lack motivation to decrease emission levels due to oil price escalation. Unlike the oil price, oil price volatility comparably decreases GHG emissions in oil-exporting and -importing economies. Thus, one might be tempted to take oil price volatility and the future uncertainty of oil price as a virtuous instance rather than oil price increment. Thus, policymakers need to pay attention to market forces and policy measures to monitor GHG emissions due to economic activities. The results are also robust under the alternative econometrics estimation model of generalized method of moments (GMM)-Differenced. |
| first_indexed | 2024-03-10T13:01:29Z |
| format | Article |
| id | doaj.art-f8aaa3495a23445d8dc7711792523424 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T13:01:29Z |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-f8aaa3495a23445d8dc77117925234242023-11-21T11:31:02ZengMDPI AGEnergies1996-10732021-03-01146175710.3390/en14061757Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG EmissionsElyas Abdulahi Mohamued0Masood Ahmed1Paula Pypłacz2Katarzyna Liczmańska-Kopcewicz3Muhammad Asif Khan4Department of Geography and Environmental Studies, College of Social Science, Jigjiga University, P.O. Box 1020 Jigjiga, EthiopiaDepartment of Public Administration, Faculty of Management Sciences, University of Kotli, Azad Jammu and Kashmir, Kotli 11100, PakistanFaculty of Management, Czestochowa University of Technology, Armii Krajowej 19B, 42-201 Czestochowa, PolandFaculty of Economic Sciences and Management, Nicolaus Copernicus University in Torun, Gagarina 13a, 87-100 Torun, PolandDepartment of Commerce, Faculty of Management Sciences, University of Kotli, Azad Jammu and Kashmir, Kotli 11100, PakistanRecently, sustainable economic growth has taken the front line of the global development agenda. The common dependency on fossil fuel energy, greenhouse gas (GHG) emissions and the continuous rising demands for energy have posed challenges that put the world in a climate change trap. This work empirically analyzes the effect of innovation, oil price, oil price volatility and economic growth on GHG emissions over the period of 1991–2015. The study compares the emission level between European Union countries (EU) (26), oil-producing countries (22), China and the United States of America (USA) using the Driscoll–Kraay model. The main empirical finding points to a positive effect of innovation on GHG emission reduction initiatives in oil-importing economies. Particularly, EU countries significantly minimized emissions due to innovation, followed by China and the USA. Contrarily, the effect of innovation increases GHG emission in oil-exporting economies. The results also indicate broader significant effects of oil price and oil price volatility on GHG emission. Interestingly, the effect of oil price on GHG emission is asymmetrical between oil-exporting and -importing economies. Oil price increases in oil-importing countries decrease GHG emission; contrarily, its effect increases emissions in oil-exporting countries. Thus, oil-exporting countries lack motivation to decrease emission levels due to oil price escalation. Unlike the oil price, oil price volatility comparably decreases GHG emissions in oil-exporting and -importing economies. Thus, one might be tempted to take oil price volatility and the future uncertainty of oil price as a virtuous instance rather than oil price increment. Thus, policymakers need to pay attention to market forces and policy measures to monitor GHG emissions due to economic activities. The results are also robust under the alternative econometrics estimation model of generalized method of moments (GMM)-Differenced.https://www.mdpi.com/1996-1073/14/6/1757renewal energyinnovationseconomic growthR&D spendingGHG emissionsoil price volatility |
| spellingShingle | Elyas Abdulahi Mohamued Masood Ahmed Paula Pypłacz Katarzyna Liczmańska-Kopcewicz Muhammad Asif Khan Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions Energies renewal energy innovations economic growth R&D spending GHG emissions oil price volatility |
| title | Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions |
| title_full | Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions |
| title_fullStr | Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions |
| title_full_unstemmed | Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions |
| title_short | Global Oil Price and Innovation for Sustainability: The Impact of R&D Spending, Oil Price and Oil Price Volatility on GHG Emissions |
| title_sort | global oil price and innovation for sustainability the impact of r d spending oil price and oil price volatility on ghg emissions |
| topic | renewal energy innovations economic growth R&D spending GHG emissions oil price volatility |
| url | https://www.mdpi.com/1996-1073/14/6/1757 |
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