The Effect of Entrepreneurship, Technology, and Innovation on the Co2 Emissions in Developed and Developing Countries

This study examines the impact of entrepreneurship, technology, and innovation on the Environmental Kuznets Curve (EKC), using data from 2006–2016. Most studies either focus on the relationship between economic growth and carbon dioxide (CO2) emissions or the relationship between business activities and economic growth. Here, we expand this research by connecting the two streams and propose a way to make economic activities more sustainable. Applying quantile regression to our panel data and grouping countries in peer groups, we explore how the impact of the independent variables varies across the emissions distribution. We find evidence for an N-shaped (inverted N-shaped) EKC relationship in developed (developing) countries. Our results also confirm that renewable energy consumption negatively affects environmental degradation. Furthermore, entrepreneurship increases CO2 emissions in developed countries, suggesting that policies should incentivize a greener business model. Finally, innovation increases (decreases) emissions in developing (developed) countries