Environmental technology development and diffusion: panel data evidence from 56 countries

Abstract

This study analyzes environmental technology development and diffusion patterns in 56 countries and for the time period 2005–2014 to provide an up-to-date assessment on underlying determinants. Foreign direct investment, human-knowledge development, institutional efficiency and quality of governance are taken into account to assess the cumulative nature of environmental technology development and diffusion. Static specifications were implemented, rejecting the EKC hypothesis and producing inverted N-shape relationships in the case of technology development and N-shape relationships in the case of diffusion. The turning points are all well within the sample and those of technology development are lower compared to the ones of diffusion. © 2020, Society for Environmental Economics and Policy Studies and Springer Japan KK, part of Springer Nature.