<p>Export diversification and environmental innovations are widely regarded as key determinants of ecological sustainability. However, the economic gains of export diversification often come at the expense of ecological sustainability, as they tend to drive higher energy consumption through fossil fuel use and other polluting activities. To help address these challenges and add a novel contribution to existing literature, this study analyzes how environmental innovations moderate the impact of export diversification on ecological sustainability via load capacity factor across main trading developing economies (China, India, South Korea, Malaysia, Mexico, Russia, and Singapore) from 1995 to 2020. The empirical results show that export diversification, energy consumption, population, and financial markets efficiency negatively impact ecological sustainability. Regarding the interaction term, environmental innovation plays a significant role in converting the negative ecological effects of export diversification into positive outcomes. Furthermore, the relationship between economic growth and its squared term follows a U-shaped pattern, which validates the load capacity curve assumption. Therefore, this study highlights the importance for main trading developing economies of promoting export diversification and environmental innovation by simultaneously supporting the adoption of renewable energy technologies, low-carbon production techniques, and clean transport to achieve ecological sustainability.</p>

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Export diversification meets environmental innovation: pathways to sustainability

  • Elma Satrovic,
  • Ojonugwa Usman,
  • Andrew Adewale Alola,
  • Magdalena Radulescu

摘要

Export diversification and environmental innovations are widely regarded as key determinants of ecological sustainability. However, the economic gains of export diversification often come at the expense of ecological sustainability, as they tend to drive higher energy consumption through fossil fuel use and other polluting activities. To help address these challenges and add a novel contribution to existing literature, this study analyzes how environmental innovations moderate the impact of export diversification on ecological sustainability via load capacity factor across main trading developing economies (China, India, South Korea, Malaysia, Mexico, Russia, and Singapore) from 1995 to 2020. The empirical results show that export diversification, energy consumption, population, and financial markets efficiency negatively impact ecological sustainability. Regarding the interaction term, environmental innovation plays a significant role in converting the negative ecological effects of export diversification into positive outcomes. Furthermore, the relationship between economic growth and its squared term follows a U-shaped pattern, which validates the load capacity curve assumption. Therefore, this study highlights the importance for main trading developing economies of promoting export diversification and environmental innovation by simultaneously supporting the adoption of renewable energy technologies, low-carbon production techniques, and clean transport to achieve ecological sustainability.