Modeling the impacts of technological innovation and financial development on environmental sustainability: New evidence from the world’s top 14 financially developed countries

Ullah A., Doğan M., Altay Topcu B., Saadaoui H.

ENERGY STRATEGY REVIEWS, vol.101229, no.50, pp.1-13, 2023 (SCI-Expanded)

  • Publication Type: Article / Article
  • Volume: 101229 Issue: 50
  • Publication Date: 2023
  • Doi Number: 10.1016/j.esr.2023.101229
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Compendex, INSPEC, Directory of Open Access Journals
  • Page Numbers: pp.1-13
  • Kayseri University Affiliated: Yes


Developing a sustainable economic system in the wake of unprecedented environmental challenges is the major

cry of the day. This study aims to investigate the impacts of financial development, technological innovation,

globalization, trade openness, and renewable energy consumption on the ecological footprint of 14 countries

with the highest levels of financial development. The utilized econometrics battery include slope homogeneity

tests, Westerlund cointegration, panel Augmented Mean Group (AMG), and Dumitrescu-Hurlin (2012) causality

approaches. The study period spans from 1990 to 2018. The empirical outcomes indicate that financial development

negatively affects environmental sustainability. The results further reveal that globalization technological

innovation, trade openness, and renewable energy consumption bolster environmental quality. Based on

the causality outcomes, a bidirectional causal link is witnessed between technological innovation, globalization,

renewable energy consumption, and ecological footprint; however, a unidirectional causality relationship exists

from trade openness and financial development to ecological footprint. The study findings underscore the

importance of globalization, technological innovation, trade openness, and renewable energy consumption in

fine-tuning environmental policies and improving environmental quality in these countries.