Technological Innovations, Financial Development and Environmental Quality: An Analysis of Developing Countries

Abstract

This study discovers the influence of technological innovation and financial progress on environmental quality. System Generalized Method of Moments is applied on a panel of 63 developing countries for the time period of 1996 to 2020. Carbon dioxide emission is used as dependent variable and independent variables technological innovation, financial expansion, energy consumption urban population and gross domestic product are also being used for the analysis. The empirical outcome reveals that technological innovation and financial development indeed are important in determining the environmental quality in developing economies. However, according to previous literature the influence of technological innovation and financial progress on environmental quality differs among developing countries. The findings of the model display that the Technological innovation and financial development impose the significant and positive impact on carbon dioxide emission.