Public budgets for energy RD&D and the effects on energy intensity and pollution levels

• Published in: Environmental science and pollution research international 2015-04, Vol.22 (7), p.4881-4892
• Main Authors: Balsalobre, Daniel, Álvarez, Agustín, Cantos, José María
• Format: Article
• Language: English
• Subjects: Air pollution; Aquatic Pollution; Atmospheric Pollutants in a Changing Environment; Atmospheric Protection/Air Quality Control/Air Pollution; Budgets; Conservation of Energy Resources; Earth and Environmental Science; econometric models; Econometrics; Economic development; Economic growth; Economics; Ecotoxicology; Emissions; Energy; Energy consumption; Energy industry; Energy policy; Environment; Environmental changes; Environmental Chemistry; Environmental Health; Environmental impact; Environmental Kuznets curve; environmental models; Environmental policy; Environmental Pollution - analysis; Environmental Pollution - economics; Environmental Pollution - prevention & control; Environmental quality; Environmental science; Evolution; GDP; Greenhouse Effect; greenhouse gas emissions; Greenhouse gases; Gross Domestic Product; Growth models; Impact analysis; Innovations; issues and policy; Mathematical models; Models, Theoretical; Per capita; pollution; Pollution levels; Pollution studies; Public sector; R&D; Research & development; Research - economics; research and development; Sustainable development; Technological change; Waste Water Technology; Water Management; Water Pollution Control
• ISSN: 0944-1344; 1614-7499
• DOI: 10.1007/s11356-014-3121-3

This study, based on the N-shaped cubic model of the environmental Kuznets curve, analyzes the evolution of per capita greenhouse gas emissions (GHGpc) using not just economic growth but also public budgets dedicated to energy-oriented research development and demonstration (RD&D) and energy intensity. The empirical evidence, obtained from an econometric model of fixed effects for 28 OECD countries during 1994–2010, suggests that energy innovations help reduce GHGpc levels and mitigate the negative impact of energy intensity on environmental quality. When countries develop active energy RD&D policies, they can reduce both the rates of energy intensity and the level of GHGpc emissions. This paper incorporates a moderating variable to the econometric model that emphasizes the effect that GDP has on energy intensity. It also adds a variable that reflects the difference between countries that have made a greater economic effort in energy RD&D, which in turn corrects the GHG emissions resulting from the energy intensity of each country.