THE RELATIONSHIP BETWEEN TECHNOLOGICAL INNOVATIONS AND CARBON INTENSITY IN E7 COUNTRIES

Abstract

This study analyses the impact of technological innovation on carbon intensity in E7 countries, excluding Indonesia. The analysis is conducted using the Dumitrescu-Hurlin panel causality test with annual data covering the period from 1992-2021. The literature suggests that advancements in technological innovations have either a direct or indirect effect on carbon dioxide emissions. While this effect is often negative, some studies have found that technological innovations can increase carbon dioxide emissions. However, the findings of this study indicate that there is no causal relationship between the two variables. Technological innovations in E7 countries do not play an effective role in reducing carbon intensity. The results demonstrate that technological innovations in these countries have not yet reached a level where they can significantly lower carbon intensity. In this context, it is emphasised that policymakers should prioritise technologies aimed at reducing carbon emissions.