The effect of energy R&D expenditures on CO2 emission reduction: estimation of the STIRPAT model for OECD countries

Koçak E., Ulucak Z.

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, vol.26, no.14, pp.14328-14338, 2019 (SCI-Expanded) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 26 Issue: 14
  • Publication Date: 2019
  • Doi Number: 10.1007/s11356-019-04712-2
  • Journal Name: ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.14328-14338
  • Keywords: Energy innovation, STIRPAT, Generalized method of moments (GMM), CO2 reduction, OECD
  • Erciyes University Affiliated: Yes

Abstract

Energy innovations are critical to combating global warming and climate change. In this context, we focus on the impact of energyresearch-development (R&D) expenditures, which are the input of energy innovations, on CO2 emissions. For this purpose, we investigate the effect of disaggregated energy R&D expenditures on CO2 emission in 19 high-income OECD countries over the period 2003-2015. The dynamic panel data method is followed for empirical analysis. The results of the study show that R&D expenditures forenergy efficiency and fossil energy have an increasing effect on CO2 emissions. Contrary to expectations, there is no significant relationship between renewable energy R&D expenditures and CO2 emissions. Remarkably, there is strong evidence that the power and storage R&D expenditures have a reducing effect on CO2 emissions. In light of the empirical findings, policy implications and recommendations to potential readers and authorities are further discussed.