The cyclical impact of innovation in green and sustainable technologies on carbon dioxide emissions in OECD economies.

This paper proposes a novel model for the cyclical and non-linear association between innovation in green and sustainable technologies and carbon dioxide (CO) emissions using foreign direct investment, gross domestic consumption, and renewable energy consumption as control variables for OECD economies. First, the findings validated the long-run cointegration among variables. Second, the significant long-term negative nexus between renewable energy consumption, positive shocks to innovation in green and sustainable technologies, and CO emission was validated. Third, income per capita (GDP) and the negative shocks to innovation in green and sustainable technologies contributed to the CO emissions. Based on these findings, this study offers some policy implications to mitigate CO emissions.