Life cycle analysis of green technologies: Assessing the impact of environmental policies on carbon emissions and energy efficiency

A growing trend in environmental contamination has highlighted the need for greater access to green technologies and clean energy to alleviate environmental stress. This study seeks to quantify the impact of climate mitigation technologies, particularly those related to environmental technology, on environmental quality and economic development. The relationship between environment-related technologies, disaggregated energy use, carbon dioxide emissions, and the stringency of environmental policies was analyzed using Westerlund co-integration, FGLS, and Granger causality techniques across 19 member countries of the Organization for Economic Co-operation and Development (OECD). The findings show that an increase in fossil fuel use leads to a rise in carbon emissions. Similarly, the use of renewable energy also contributes to higher carbon emissions, while environment-related technologies have a positive impact on environmental quality. In contrast, stricter environmental policies have a negative effect on carbon dioxide emissions. A one-way causality was identified, with environment-related technologies, renewable energy adoption, and environmental policy stringency influencing carbon dioxide emissions, rather than being influenced by them. These findings underscore the significance of environment-related technology in enhancing both environmental quality and economic productivity. Policymakers are encouraged to focus on allocating resources for research, establishing robust regulatory frameworks, fostering collaboration, promoting education and awareness, and providing support for sectors transitioning toward climate change mitigation technologies.