Long-run relationship between R&D investment and environmental sustainability: Evidence from the European Union member countries

The researchers, environmental scientists and policymakers around the world are exerting substantial efforts to mitigate the growth of CO(2)emissions to save the planet. A number of measures and initiatives, such as, energy efficiency, renewable energy technologies and emission-control are proposed in order to reduce CO(2)emissions. This study examines the long-run relationship between R&D investment and environmental sustainability in a panel of 25 European Union (EU) member countries over a period of 17 years (1998-2014). We use robust and reliable econometric methods to capture the interactions between R&D investment on renewable energy consumption and CO(2)emissions. The findings confirm that the growth of R&D expenditures promotes renewable energy consumption and plays a significant role in reducing CO(2)emissions in the sample countries. Furthermore, the findings suggest that increasing the share of renewable energy consumption in the total energy mix also reduces CO(2)emissions. Given these results, we suggest that the EU policymakers provide more financial and regulatory assistance to the R&D activities, specifically in the energy sector, to ensure promoting low carbon economies in this region.

Automated summary

This study shows that increasing R&D expenditure promotes renewable energy consumption and plays a significant role in reducing CO(2) emissions. Additionally, increasing the share of renewable energy in the energy mix also leads to lower CO(2) emissions.