Environmental technology development and diffusion: panel data evidence from 56 countries

Abstract

This study analyzes environmental technology development and diffusion patterns in 56 countries and for the time period 2005–2014 to provide an up-to-date assessment on underlying determinants. Foreign direct investment, human-knowledge development, institutional efficiency and quality of governance are taken into account to assess the cumulative nature of environmental technology development and diffusion. Static specifications were implemented, rejecting the EKC hypothesis and producing inverted N-shape relationships in the case of technology development and N-shape relationships in the case of diffusion. The turning points are all well within the sample and those of technology development are lower compared to the ones of diffusion.

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Notes

  1. 1.

    Two Stage Least Squares (2SLS) was used to control for non-observable specific effects but the results were statistically insignificant.

  2. 2.

    Theoretical underpinnings on the existence of an N-shape relationship can be found in Halkos (2012, 2013).

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Acknowledgements

We would like to thank the Co-Editor Professot Shunsuke Managi and the reviewers for their helpful and constructive comments and recommendations. Any remaining errors are solely the authors’ responsibility.

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Correspondence to Antonis Skouloudis.

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Appendix 1

Appendix 1

Countries included in the assessment

Argentina Egypt South Korea Serbia
Australia Estonia Latvia Singapore
Austria Finland Lithuania Slovak Republic
Belgium France Luxembourg Slovenia
Brazil Germany Malaysia Spain
Bulgaria Greece Mexico South Africa
Canada Hungary Morocco Sweden
Chile Hong Kong The Netherlands Switzerland
China Iceland New Zealand Taiwan
Colombia India Norway Turkey
Croatia Ireland Poland Ukraine
Czech Republic Israel Portugal United Kingdom
Denmark Italy Romania United States
Ecuador Japan Russia Uruguay

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Halkos, G., Skouloudis, A. Environmental technology development and diffusion: panel data evidence from 56 countries. Environ Econ Policy Stud (2020). https://doi.org/10.1007/s10018-020-00279-2

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Keywords

  • Environmental technology
  • Panel data analysis
  • EKC hypothesis