Energy efficiency, carbon neutrality and technological innovation: a strategic move towards green economy

Figures & data

Table 1. Description of variables.

Variable	Description	Symbol	Data source
Green economic growth	Production-based CO2 productivity (US dollars per kilogram, 2015)	GEG	OECD
Capital formation	Gross capital formation (constant 2010 US$)	CAF	WDI
Labor forcé	Labor force participation rate, total (% of total population ages 15+) (modeled ILO estimate).	LAF	WDI
Energy efficiency	Energy productivity, production per unit of energy (US $)	EEF	WDI
Renewable energy	Renewable energy consumption (Exajoules).	REN	BP
Technological innovation	The number of patent applications.	TEC	WDI
Financial freedom	Index 0 − 100.	FFR	Heritage Foundation
Industrialization	Manufacturing, value added (constant 2010 US$)	IND	WDI
Government Integrity	Index 0 − 100.	GIN	Heritage Foundation

Source: Authors own estimations.

Table 2. Descriptive statistics.

Variable	GEG	CAF	LAF	EEF	REN	TEC	FFR	IND	GIN
Mean	1.549	25.040	4.274	9.160	−2.042	7.935	4.206	24.552	4.164
St Dev.	0.442	1.617	0.100	0.391	2.054	2.107	0.226	1.625	.352
Min	0.072	21.187	3.881	7.813	−9.903	3.178	3.40	20.881	2.302
Max	2.846	29.017	4.489	10.374	2.010	13.339	4.499	28.349	4.605
Kurtosis	3.217	2.756	4.326	3.648	4.056	3.082	4.120	2.808	5.294
Skewness	−0.081	−0.033	−0.744	−0.495	−0.894	0.336	−0.918	−0.046	−1.222
Jarque-Bera	47.58^a	29.411^a	153.2^a	56.14^a	173.1^a	16.63^a	180.6^a	18.755^a	438.8^a
Correlation	–	0.1072^b	0.1437^a	0.6260^a	0.3224^a	−0.1530^a	0.0114	0.0946	0.1151^b

Note: a, b shows the significance level at 1% and 5%, respectively.

Source: Authors own estimations.

Figure 1. Correlation of model variables.

Source: Authors own estimations.

Table 3. VIF Statistic.

Variable	VIF	Tolerance
CAF	2.512	0.398
LAF	1.562	0.640
EEF	1.795	0.557
REN	2.948	0.339
TEC	1.457	0.686
FFR	1.863	0.537
IND	1.394	0.717
GIN	1.579	0.633

Source: Authors own estimations.

Table 4. CD test and first-generation unit root test.

Variables	CD test	p-value	CIPS		Herwartz & Siedenburg
			Level	1st difference	Level	1st difference
GEG	148.481ª	0.0000	−2.568^a	−5.318^a	−0.984	−4.665^a
CAF	36.353ª	0.0000	−3.698^a	−6.856^a	−0.735	−6.542^a
LAF	69.364^b	0.0121	−1.125	−5.935^a	−0.054	−3.241ª
EEF	74.408ª	0.0000	2.478^a	6.874^a	0.8580	3.987ª
REN	83.369ª	0.0000	−1.093	−4.354^a	−1.664	−5.962ª
TEC	96.966ª	0.0000	1.814	2.578^a	1.165	2.987ª
FFR	65.694ª	0.0000	−1.634	−3.693^a	−2.948^a	−6.351ª
IND	48.693ª	0.0005	−1.593ª	−6.135^a	−1.364	−5.374ª
GIN	54.527^b	0.0058	−0.871	−2.996^a	−1.345	−8.253ª

Note: a, b and c represents the significance level of 1%, 5% and 10%, respectively.

Source: Authors own estimations.

Table 5. Westerlund panel cointegration.

Statistic	Value	p-value	Robust p-value
Gt	−6.36^a	0.000	0.000
Ga	−15.36^a	0.000	0.000
Pt	−22.24^a	0.000	0.000
Pa	−19.25^a	0.000	0.001

Note: ‘a’ represents the 1% level of significance. The number of replications is 500. Based on the normal distribution, the p-values are for a one-sided test. Based on 500 bootstrap replications, the robust p-value are for a one-sided test.

Source: Authors own estimations.

Table 6. Results of MMQR.

Explanatory variables	Location	Scale	Quantiles
			1st	2nd	3rd	4th	5th	6th	7th	8th	9th
CAF	0.0208633^a	−0.0258631^b	0.062714^b	0.0515728^c	0.0419648^a	0.032336^c	0.0225861	0.0131765	0.0026115	−0.007116	−0.0172991
	(0.005)	(0.011)	(0.023)	(0.093)	(0.002)	(0.091)	(0.442)	(0.653)	(0.932)	(0.829)	(0.635)
LAF	0.1773488	0.0374394	0.115672	0.1349634	0.1478457	0.1621883	0.1783239	0.1895146	0.2024177^c	0.2186939^c	0.2341729^c
	(0.195)	(0.709)	(0.661)	(0.537)	(0.437)	(0.316)	(0.189)	(0.125)	(0.085)	(0.078)	(0.092)
EEF	0.9529914^a	0.0554311^c	0.8616754^a	0.8902374^a	0.9093103^a	0.9305453^a	0.954435^a	0.9710034^a	0.9901072^a	1.014205^a	1.037122^a
	(0.000)	(0.081)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
REN	0.0233422	−0.0066558^c	0.0343067^c	0.0308772^c	0.0285871^b	0.0260373^b	0.0231688^b	0.0211794^b	0.0188856^b	0.0159921^c	0.0132403
	(0.021)	(0.068)	(0.077)	(0.054)	(0.041)	(0.029)	(0.020)	(0.020)	(0.029)	(0.080)	(0.209)
TEC	0.0473871^a	0.008435^a	0.0334915^b	0.0378378^a	0.0407401^b	0.0439715^a	0.0476068^a	0.050128^a	0.053035^a	0.056702^a	0.0601893^a
	(0.001)	(0.003)	(0.026)	(0.000)	(0.041)	(0.010)	(0.001)	(0.000)	(0.000)	(0.000)	(0.000)
FFR	0.0280868^a	−0.0126447^a	0.0489175	0.042402	0.0380512	0.0332071	0.0277575	0.023978	0.0196201^a	0.014123b	0.0088951^a
	(0.002)	(0.007)	(0.448)	(0.428)	(0.414)	(0.402)	(0.403)	(0.427)	(0.004)	(0.025)	(0.000)
IND	0.1293434^a	−0.024536^a	0.1697635^b	0.1571208^b	0.1486784^a	0.1392789^a	0.1287044^a	0.1213706^a	0.1129145^a	0.1022478^a	0.0921036^b
	(0.002)	(0.003)	(0.035)	(0.018)	(0.010)	(0.005)	(0.002)	(0.001)	(0.002)	(0.007)	(0.035)
GIN	−0.0766987^a	0.002993^c	0.0717681^b	0.1733103^c	0.2743402^b	0.3754868	0.4767767	0.5776713	0.6787028	0.780004	0.8812414
	(0.002)	(0.072)	(0.041)	(0.070)	(0.035)	(0.612)	(0.902)	(0.501)	(0.130)	(0.654)	(0.782)

Note: a, b and c represent at 1%, 5% and 10% significance level, respectively. The p-value is shown in parentheses.

Source: Authors own estimations.

Figure 2. Graphic representation of the MMQR, FMOLS, DOLS and FE-OLS coefficients.

Source: Authors own estimations.

Table 7. The results of Dumitrescu–Hurlin panel causality tests.

		Independent variables
		GEG	CAF	LAF	EEF	REN	TEC	FFR	IND	GIN
Dependent variables	GEG	–	11.562^a	7.369^a	8.963^a	18.358^a	8.623^a	10.905^a	9.511ª	11.951^a
	CAF	6.251ª	–	–	–	–	–	–	–	–
	LAF	6.321ª	–	–	–	–	–	–	–	–
	EEF	11.385ª	–	–	–	–	–	–	–	–
	REN	9.852ª	–	–	–	–	–	–	–	–
	TEC	6.365ª	–	–	–	–	–	–	–	–
	FFR	8.365ª	–	–	–	–	–	–	–	–
	IND	8.621ª	–	–	–	–	–	–	–	–
	GIN	5.612ª	–	–	–	–	–	–	–	–

Note: ‘a’ represents the 1% level of significance.

Source: Authors own estimations.

Table A1. Countries examined.

S.No.	OECD countries
1	Australia
2	Austria
3	Belgium
4	Canada
5	Chile
6	Colombia
7	Czech Republic
8	Denmark
9	Estonia
10	Finland
11	France
12	Germany
13	Greece
14	Hungary
15	Iceland
16	Ireland
17	Israel
18	Italy
19	Japan
20	Korea, Dem. People’s Rep.
21	Latvia
22	Lithuania
23	Luxembourg
24	Mexico
25	Netherlands
26	New Zealand
27	Norway
28	Poland
29	Portugal
30	Slovak Republic
31	Slovenia
32	Spain
33	Sweden
34	Switzerland
35	Turkey
36	United Kingdom
37	United States

Source: Authors own estimations.

Table A2. Results panel estimation.

Variables	FMOLS	DOLS	FE-OLS
CAF	0.062ª	0.002^a	0.035^c
LAF	0.112ª	0.194^b	0.223^c
EEF	0.854^a	0.984^c	1.008^c
REN	0.025^b	0.018^c	0.032^a
TEC	0.038^b	0.059^b	0.042^b
FFR	0.045^a	0.009^c	0.035^c
IND	0.112^a	0.108^a	0.159^a
GIN	0.153^a	0.578^a	0.493^c

Note: a, b and c represent at 1%, 5% and 10% level of significant, respectively. The number of one-sided p-value based on normal distribution; replication is 500.

Source: Authors own estimations.