2022-01-26-ADB-Impact_of_Energy_Innovation_on_Greenhouse_Gas_Emissions_Moderation_of_Regional_Integration_and_Social_Inequality_in_Asian_Economies_31页_549kb

Energy Innovation's Impact on GHG Emissions: Moderation by Regional Integration and Social Inequality in Asian Economies

Abstract

This study analyzes the impact of energy innovation on greenhouse gas (GHG) emissions across 24 Asian countries (1990–2019) and assesses the moderating effects of regional integration, international cooperation, political constraints, and social inequality. Using a cross-sectionally augmented ARDL (CS-ARDL) model, the research finds that energy innovation significantly reduces GHG emissions, but its effectiveness is moderated by regional integration and social inequality. Higher social inequality dampens the environmental benefits of energy innovation, while regional integration increases emissions in the short run but may weaken the effect in the long run. International cooperation strengthens the emission-reducing impact of energy innovation. The study recommends a phased policy framework to address social inequality and promote clean energy transitions.

Key Findings

1. Main Effects:

• Energy Innovation significantly reduces GHG emissions.
• Regional Integration increases emissions but weakens the negative impact of energy innovation in the long run.
• Social Inequality diminishes the environmental benefits of energy innovation.
• International Cooperation amplifies the emission-reducing effect of energy innovation.
• Political Constraints hinder the effectiveness of energy innovation policies.

2. Moderating Effects:

• Social inequality reduces the positive impact of energy innovation and international cooperation while amplifying regional integration's adverse effects.
• The combined effect of regional integration, social inequality, and political constraints creates challenges for climate policy design.

3. Elasticity Analysis:

• Energy innovation reduces GHG emissions, but this effect varies with cross-sectional factors, such as social inequality and integration levels.
• In the presence of high social inequality, the impact of energy innovation diminishes.

4. Policy Recommendations:

Core Policy Framework:

• Short-Term: Address social inequality via regional labor mobility and job creation.
• Medium-Term: Utilize international cooperation and financial incentives (e.g., discriminatory interest rates) for cleaner technologies.
• Long-Term: Reduce political constraints to attract foreign investment and enhance energy innovation diffusion.

Tangential Policy Framework:

• Institutionalize environmental awareness through educational reforms to sustain demand for clean energy and support SDG 9 (industry, innovation, and infrastructure).

Assumptions:

• Firms are willing to adopt eco-friendly technologies with appropriate incentives.
• The bureaucratic system avoids rent-seeking, facilitating policy implementation.

Limitations:

• Study encompasses 23 Asian countries; generalizability may be limited to countries with comparable structures.
• Spatial dimensions of emissions and trade were not fully explored.