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; Jianchun  Fang

doi:10.1002/ijfe.2049

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 journal › Article › peer-review

122 Citations (Scopus)

780 Downloads (Pure)

Abstract

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 language	English
Pages (from-to)	4979-4992
Number of pages	14
Journal	International Journal of Finance and Economics
Volume	26
Issue number	4
Early online date	18 Sept 2020
DOIs	https://doi.org/10.1002/ijfe.2049
Publication status	Published - Oct 2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy
SDG 9 Industry, Innovation, and Infrastructure

Keywords

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

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1002/ijfe.2049

Author Accepted ManuscriptAccepted author manuscript, 359 KB

Cite this

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title = "The impacts of R\&D investment and stock markets on clean energy consumption and CO2 emissions in OECD economies",

abstract = "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{\textendash}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. ",

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The impacts of R&D investment and stock markets on clean energy consumption and CO₂ emissions in OECD economies. / Alam, Md Samsul; Apergis, Nicholas; Paramati, Sudharshan Reddy (Lead / Corresponding author) et al.
In: International Journal of Finance and Economics, Vol. 26, No. 4, 10.2021, p. 4979-4992.

Research output: Contribution to journal › Article › peer-review

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