The role of green innovation in achieving environmental sustainability in European Union countries: Testing the environmental Kuznets curve hypothesis

Abstract

This study investigates the impact of renewable energy consumption, energy R&D investments, and green patents on the ecological footprint in European Union countries with the framework of the environmental Kuznets curve (EKC) hypothesis from 1990 to 2018. For this purpose, second-generation panel methods were used in the study. According to the results, the EKC hypothesis is valid only in Finland. On the other hand, renewable energy consumption reduces the ecological footprint in Austria and the Netherlands while it increases in Germany and Italy. Green patent reduces the ecological footprint in Italy while it increases in Finland, Germany, and the Netherlands, and energy R&D investments increase the ecological footprint in Austria, Denmark, Finland, and the Netherlands. The causality test results show unidirectional causality from renewable energy consumption, energy R&D investments, and green patents to ecological footprint. Overall, policymakers should support the green innovation process for a sustainable environment. (c) 2023 International Association for Gondwana Research. Published by Elsevier B.V. All rights reserved.