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02-03-2019

Cooperation, diffusion of technology and environmental protection: a new index

Authors: Cristian Barra, Giovanna Bimonte, Luigi Senatore

Published in: Quality & Quantity | Issue 4/2019

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Abstract

There are various types of environmental indexes or indicators in the literature. In this paper, we propose a new index that is able to point out the important relationship between environmental protection and investments in innovation processes. We identify the index with the acronym EICI (environmental innovation comparative index). This new empirical tool can represent a new way to illustrate how the level of innovation can determine different levels of air pollution in the world. We use generalized method of moments (GMM) and ordinary least squares (OLS) models to investigate how this new index impacts the variations in greenhouse gas emissions and we underline some fundamental policy implications. Considering the levels of the EICI and the empirical analysis of the role of this index then we conclude that enforcing new environmental agreements with some fundamental rules, as the incentive to reduce the technological gaps among the countries, is crucial to protect the environment and at same time stimulate the investment for innovation in all countries of the world.

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Generally, Alan Heston and Robert Summers (with others) created the PWT to construct consistent national accounts comparisons across countries as well as over time. This tool can generate a System of Real National Accounts (SRNA) that makes inter-spatial comparisons possible. In the latest version 8.0 of the PWT there are 29 variables for 167 countries (for China there are two versions). The approximately 6000 annual time series begin in the 1950 and end in the 2011.

PWT is selected due to its more detailed temporary and spatial information compared with the WBD; moreover, we can examine a sample of 68 countries instead of 60 countries when using the WBD.

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Title: Cooperation, diffusion of technology and environmental protection: a new index
Authors: Cristian Barra
Giovanna Bimonte
Luigi Senatore
Publication date: 02-03-2019
Publisher: Springer Netherlands
Published in: Quality & Quantity / Issue 4/2019
Print ISSN: 0033-5177
Electronic ISSN: 1573-7845
DOI: https://doi.org/10.1007/s11135-019-00848-y

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