Energy efficiency: The role of technological innovation and knowledge spillover

• Published in: Technological forecasting & social change 2021-06, Vol.167, p.120659, Article 120659
• Main Authors: Sun, Huaping, Edziah, Bless Kofi, Kporsu, Anthony Kwaku, Sarkodie, Samuel Asumadu, Taghizadeh-Hesary, Farhad
• Format: Article
• Language: English
• Subjects: Air quality management; Developed countries; Economic development; Economic growth; Emissions (Pollution); Energy efficiency; Energy management; Energy management systems; Energy use; Energy utilization; Environmental management; Green technology; Infrastructure; Innovation; Innovations; Knowledge; Knowledge spillover; R&D; Research & development; Resource management; Sustainable development; Technological change; Technology
• ISSN: 0040-1625; 1873-5509
• DOI: 10.1016/j.techfore.2021.120659

•We investigate the effect of successful invention efforts in a country, on energy efficiency performance in neighboring countries.•Results show a positive and significant relationship between knowledge spillovers and a country's energy efficiency performance.•It is important to develop domestic innovation capabilities. It is widely accepted that technological innovation reduces energy intensity and carbon emissions without compromising global economic growth. Although new innovative developments tend to be concentrated in a few developed countries, transboundary spillover of technological innovation influences the energy efficiency and sectoral performance of other countries. A more thorough assessment of international knowledge spillover related to energy intensity reduction can enhance understanding of mitigation opportunities and costs. This study investigated, therefore, the effects of technological innovation within certain countries on the energy efficiency performance of neighboring countries. We used data from the OECD Triadic Patent Families database for 24 innovating countries between the years 1994 and 2013. Accounting for geographical distance, our results showed a positive, significant relationship between knowledge spillover and country-specific energy efficiency performance. All countries showed a sustainable efficiency growth trend, which indicates a steady increase in energy efficiency. Germany, France, the UK, the Netherlands, and Switzerland are the most energy efficient countries. These results have policy implications for sustainable energy management and environmental sustainability, highlighting the need to develop domestic research and development capabilities that increase innovation-based infrastructure.