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Emissions (Pollution)

Sustainable Development through Green Innovation and Fiscal Spending

Strategic Insights

— 1 min read

Research published by the Central University of Kerala has highlighted the significant impact of green innovation and fiscal spending on reducing carbon emissions in China. The study, which employed the MM-QR approach to analyze the relationships between various economic and environmental factors, found that advancements in green technology and fiscal policies promoting environmental technologies contribute to reduced carbon emissions. The research also suggests that human capital development, green technology innovation, and fiscal expenditure on environmental research and development (R&D) are crucial for achieving net-zero emissions.

Key Takeaways:

  • The study found that Green Total Factor Productivity (GTFP), Fiscal Expenditure Technology (FTE), Green Technology Innovation (GTI), and Innovation Level (INN) have significant negative impacts on carbon emissions, strengthening at higher quantiles.
  • The Environmental Kuznets Curve (EKC) hypothesis was used to analyze the relationships between economic and environmental factors, with findings suggesting a potential turning point towards environmental degradation at higher income levels.
  • The research proposes policy recommendations, including fostering human capital development for skilled labor in green sectors, promoting the development and adoption of green technologies, and increasing fiscal expenditure on environmental R&D.
  • The study provides empirical evidence on the effectiveness of green economic policies and technological advancements in reducing carbon emissions.
  • The research was peer-reviewed and published in the Sustainable Development journal.

Statistics:

  • The study analyzed data from China from 2007 to 2020.
  • The MM-QR approach was used to analyze the asymmetric relationships between GTFP, FTE, GTI, INN, GDP, HC, and carbon emissions.
  • The study found that GTFP, FTE, GTI, and INN exert significant negative impacts on carbon emissions, with effects strengthening at higher quantiles.
  • The study suggests that GDP and GDP2 are positively associated with carbon emissions, indicating a potential turning point towards environmental degradation.
  • The research aims to contribute to the field of environmental management by providing empirical evidence on the effectiveness of green economic policies and technological advancements in reducing carbon emissions.

Sources:

  • Green Innovation and Fiscal Spending: Decoding the Path To Sustainable Development. Sustainable Development, 2025;33(4):6307-6327.
  • Central University of Kerala, School of Business Studies, Dept Tourism Studies, Kasaragod, Kerala, India.
  • Sunil Tiwari, Central University of Kerala (Sunil.Tiwari@centralkeralauniversity.ac.in)
  • Buhari Dogan, Brahim Bergougui, Sudeshna Ghosh, and Daniel Balsalobre-Lorente.

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