Energy Innovations-GHG Emissions Nexus: Fresh Empirical Evidence from OECD Countries

This study explores the impact of improvements in energy research development (ERD) on greenhouse gas (GHG) emissions using environmental Kuznets curve hypothesis for 28 OECD countries over the period of 1990-2014. In doing so, we have employed a panel data where public budget in energy research development and demonstration (ERD & D) has transformed into a finite inverted V-lag distribution model developed by De Leeuw (1962). This model considers that energy innovation accumulates in time and presents empirical evidence, how energy innovation contributes in reducing energy intensity and environmental pollution as well. Our results indicate that energy innovation measures require lapses of time to reach their full effect i.e. innovation applied to measures for environmental correction does not reach its whole effect immediately, requiring instead a certain amount of time to pass. Innovation policies have recommended for improving environmental quality.