Exploring the Nexus between Knowledge Economy and Green Economy

Abstract

This research highlights and empirically tests the relation between knowledge economy and green economy. Researchers per 1 million people, total patent applications and total citable documents published in a year are used as indicators of knowledge economy. Green Perception Index and Green Performance Index of Global Green Economy Index (GGEI) are used as indicators of green economy. With cross sectional data of 48 countries for the year 2014 we applied correlation, OLS and Kernel Non-parametric causality. OLS results suggest a significant positive impact of knowledge economy indicators on green economy indicators the results from Kernel causality test indicate that causality runs from Knowledge indicators to perception index and to performance index. Taken together, these results provide the evidence of a positive association between knowledge economy and green economy and suggest that a knowledge economy can significantly contribute to build a green economy.