A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery

Examining the trade-offs in clean energy provision: Focusing on the relationship between technology transfer, renewable energy, industrial growth, and carbon footprint reduction

Sustainable energy mitigates climate change by reducing reliance on coal and oil for power generation, curbing global warming. It addresses environmental concerns and yields economic benefits-reduced fossil fuel dependence, financial inclusion, productive employment, and economic development. This research examines the impact of regional economic integration on environmental sustainability in 39 high-income European and Central Asian (ECA) nations from 2017 to 2021. Specifically, the study analyzes the influence of green energy demand, technological transfers, and trade openness on carbon emissions. The study employed various estimators, namely, a two-step Generalized Method of Moments (GMM) estimation, quantile regression, and the cointegration panel approach. These estimators were utilized to capture different aspects and dynamics of the research variables. The study finds that regional green programs and trade agreements effectively reduce carbon emissions, while technological advances and industrial output tend to raise them. Granger causality analyses reveal that emissions-led regional development, technical innovation, and trade openness are interconnected factors, and the deployment of renewable energy contributes to carbon emissions. The inter-temporal analysis suggests that regional economic integration factors will likely impact carbon emissions in the following decade. These findings support neoclassical growth theory, new institutional economics, and ecological modernization theory. Developing renewable energy sources in the region can minimize energy price fluctuations, strengthen energy security, and align with the carbon neutrality agenda. This research emphasizes the need for sustainable energy strategies and regional cooperation to foster a greener and more sustainable future.

Can increasing technological complexity help strengthen regional economic resilience?

Improving regional economic resilience through technological innovation has always been a strategic focus of China, but the previous studies have paid little attention to the impact of structural characteristics of technological innovation on regional economic resilience. Based on the complexity of technology, this study studies the impact and mechanism of technological systems with more complex internal mechanisms on economic resilience. The main findings are as follows: (1) Higher technological complexity is conducive to technological innovation and can improve regional economic resilience; (2) technological complexity needs to be in the appropriate range, and its positive effect shows diminishing marginal effect; and (3) optimizing market competition and absorptive capacity plays a positive role in regulating the relationship between technological complexity and regional economic resilience. This study provides policy implications for implementing innovation-driven development strategy, formulating economic recovery plan, and medium- and long-term sustainable development strategy.