The impacts of R&D investment and stock markets on clean energy consumption and CO2 emissions in OECD economies

Md Samsul Alam, Nicholas Apergis, Sudharshan Reddy Paramati (Lead / Corresponding author), Jianchun Fang (Lead / Corresponding author)

Research output: Contribution to journalArticlepeer-review

61 Citations (Scopus)
135 Downloads (Pure)


The goal of this paper is to examine to what extent R&D investment and stock market development promote clean-energy consumption and environmental protection across a panel of 30 OECD economies. Based on the theoretical approach, study employs robust panel econometric models, which account for cross-sectional dependence in the analysis and uses annual data, spanning the period 1996–2013. The empirical results illustrate that R&D and stock market have a significant long-run equilibrium relationship with clean energy and CO 2 emissions. The long-run elasticities display that R&D and stock market growth have a significant positive impact on clean-energy consumption, while they have a negative effect on the growth of CO 2 emissions. Given these findings, the paper suggests that the policy makers in the OECD economies should realize that it is worth investing in R&D activities as it is promoting the use of clean energy and ensuring low carbon economies. Therefore, the policymakers have to initiate effective policies to promote R&D activities and also encourage the firms that are listed in the stock market to adopt environmental friendly policies.

Original languageEnglish
Pages (from-to)4979-4992
Number of pages14
JournalInternational Journal of Finance and Economics
Issue number4
Early online date18 Sept 2020
Publication statusPublished - Oct 2021


  • CO emissions
  • FDI
  • OECD economies
  • R&D investments
  • clean-energy consumption
  • stock markets

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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