Drivers of green innovation in BRICS countries: exploring tripple bottom line theory

Abstract

Green technology adoption is indispensable for sustainable growth. Therefore, this study examines the determinants of green innovation in BRICS countries considering the Triple Bottom Line Theory (social, environmental, and economic). A cross-sectional autoregressive distributed lag (CS-ARDL) model is applied for empirical analysis from 1990 to 2019. The findings show that social, economic, and environmental factors significantly derive green innovation in the long run. However, their marginal contribution is substantially varied. A 1% increase in economic factors increases green innovation by 0.290%, while environmental concerns induce innovation by 0.438% in the long run. In contrast, social factors possess a relatively lower influence on green innovation, with a coefficient magnitude of 0.175%. Lastly, globalization stimulates green innovation by 0.310%. Similar results are observed in the short run; however, the magnitude of variables is significantly lower than long-run. These results are also validated using alternative estimators and recommend TBL factors as core drivers of green innovation in BRICS countries.

Keywords:

• Tripple bottom line
• green innovation
• sustainability
• BRICS countries

JEL CODES:

• O10
• O3
• Q44

Disclosure statement

No potential conflict of interest was reported by the authors.