Dynamics between green innovation and environmental quality: new insights into South Asian economies

Recently, numerous studies have analyzed the relationship between economic growth, energy consumption and CO₂ emissions. However, only a few studies have examined the effect of green innovation on environmental quality; among them, none has investigated the same issue in South Asian countries. Thus, this study aims to empirically analyze the relationship between green innovations and environmental quality in South Asian economies. This study uses the panel data set for five South Asian developing economies over the period 1990–2014. We employ a fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) to check the long-run relationship among variables. Moreover, we utilize the panel co-integration tests to confirm the relationship among variables. The findings of this research indicate that green innovation significantly improves environmental quality in South Asia. The outcomes of this study will offer better policy options to policymakers for environmental sustainability through green innovation in South Asia.