Environmental efficiency and the role of energy innovation in emissions reduction
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RESEARCH ARTICLE
Environmental efficiency and the role of energy innovation in emissions reduction Muhammad Khalid Anser 1 & Wasim Iqbal 2
&
Umar Suffian Ahmad 3 & Arooj Fatima 4 & Imran Sharif Chaudhry 5
Received: 28 January 2020 / Accepted: 29 April 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Environmental problems, including extreme weather phenomena, unprecedented global warming, and environmental disasters caused by increasing levels of CO2 and other toxic emissions, along with rapidly increasing economic development and energy consumption, require global development and policies to meet sustainable development goals. The traditional data envelopment analysis (DEA) model has limited practical applicability for measuring environmental performance, as it lacks the computational capacity to deal with undesirable outputs. The current study employs “radial” and “non-radial” DEA technology, and acknowledges the associations of a mathematical foundation to increase the analytical capability of the environmental performance of DEA. Results show that in the measurement of environmental performance analysis, the non-radial DEA model has a higher discriminating power compared to radial DEA. Results show that the average values of radial and non-radial environmental performance are highest for Latin America and the Caribbean, at 0.99 and 0.96, respectively, while the former USSR has the lowest values of 0.22 and 0.32, respectively. The South Asian region shows relatively stable values of about 0.58 to 0.65, and Latin America & Caribbean countries and sub-Saharan Africa also show a stable radial environmental performance ranging from 0.82 to 1.00. These results indicate a considerable difference among the eight world regions. Keywords Radial DEA and non-radial DEA . Environmental index . Innovation energy . Eight world regions
Introduction Two major arguments about the impact of energy innovation on emissions can be found from the existing literature. The Responsible editor: Eyup Dogan * Wasim Iqbal [email protected] Umar Suffian Ahmad [email protected] Arooj Fatima [email protected] 1
Xi’an University of Architecture and Technology, Xi’an, China
2
School of Economics and Management Shenzhen University, Shenzhen, China
3
School of Economics, Federal Urdu University of Arts, Science and Technology, Islamabad campus, Islamabad, Pakistan
4
College of economics and Management Yanshan University, Qinhuangdao, China
5
BZU Multan, Multan, Pakistan
most popular argument is that energy innovation leads to reduced emissions. It is believed that countries with a record of greater research and development (R&D) and innovation are more likely to advocate and achieve a green energy revolution than countries with low innovation success rates (Zhang et al. 2017). People from high-income countries are concerned about the quality of the environment, and innovation is needed to reduce environmental degradation. In theory, innovation and technological developments in the ener
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