Is technological innovation making world "Greener"? An evidence from changing growth story of China

Abstract Countries around the world are making efforts to transform their industrial and economic structures in order to promote green growth, and environmentally adjusted multifactor productivity growth, that relies on cleaner and sustainable energy sources. With the Fourth Industrial Revolution coming into play, eco-friendly technologies have significantly improved and repaired the environmental conditions in modern economies. Many studies on the determining factors of green growth have attracted researchers and policymakers across the globe. However, thus far, no single study has reported the role of technological innovation, in the promotion of green growth. Therefore, this study examines the impact of technological innovation on green growth, in the presence of economic growth, globalization, research & development expenditures, and human capital between the periods of 1990 to 2018, with a multivariate framework in China. By using cointegration approaches, the results suggest that in the long-run, green growth depends on technological innovation, GDP, human capital, economic globalization, and R&D expenditures. Moreover, technological innovation is found to have a positive effect on green growth. On the policy side, any initiative that targets technological innovation, globalization, R&D, and human capital shall affect green growth. These policies should take approximately more than one year to start functioning.