Do green innovation and financial globalization contribute to the ecological sustainability and energy transition in the United Kingdom? Policy insights from a bootstrap rolling window approach

• DOI: 10.1002/sd.2399
• Publication Date: 2022-09-15T11:50:40Z
• Authors: Muhammad Ramzan; Ummara Razi; Muhammad Umer Qud...; Tomiwa Sunday Ade...
• Keywords: Energy transition; Green growth

Abstract Environmental sustainability and energy transition, especially the renewable have become critical concerns of nations throughout world in recent decades. The sustainable eco‐friendly technologies led to more methodologies, substantial stewardship our natural resources, conversion sources, all which been demonstrated benefit environment significantly. However, prior studies overlooked ecological transition effects green technology innovation. Therefore, this study endeavored investigate role innovation (lnGRN) financial globalization (lnFIG) on (lnEFT) (lnENT) United Kingdom using quarterly data for period from 1995 2020. applied time‐varying (bootstrapping) rolling window technique, can retrieve casual associations among variables at different periods sub‐samples. Besides this, method is advantageous addressing non‐consistency parameters eliminating pre‐test distortion. novel Bootstrap Rolling‐Window full‐sample causality technique results demonstrate that lnGRN lnFIG unidirectional toward lnEFT lnENT. Furthermore, bootstrap rolling‐window subsamples final stage indicate mitigate lnEFT, whereas lnGDP enhance transition. On other hand, lnETX contribute environmental deterioration, while hinders Several important policy implications are derived encourage globalization, technologies, resources consumption, taxes.