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Asymmetric effects of high-tech industry and presence of pollution-haven hypothesis in APEC countries: fresh evidence with panel quantile regression

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Abstract

Climate change is destructive to both economic activity and life subsistence. The rising CO2 emission is continuously degrading the environment and altering the characteristics of multiple hazards that can adversely affect human life. Transition to energy sources and industrial processes can maximize the benefits of low transitioning carbon emission technologies while promoting equality and inclusivity. In this pursuit, the response of CO2 emission is provoked by renewable energy consumption, FDI, natural resource, interaction term of FDI and NR, medium–high-tech industry, and economic growth on APEC countries for the period 1996–2020. To draw clear and conclusive information about outcome variables at different quantiles, study applied panel quantiles regression with an optimization method, such as Markov chain Monte Carlo. Natural resource consumption, high-tech industry, and economic growth have a positive, heterogeneous, and significant effect on environmental degradation in all quantiles. It is worth noting that HT deteriorates the environment in APEC countries, generally technological progress increases energy efficiency and reduces emissions. But it confirms the existence of a cost effect, which increases the use of conventional low-cost products over high-tech products. FDI has a positive and significant effect in all quantiles except the first quantile and confirms the presence of PHH. The interaction term (FDI*NRR) and REC effects are negative and significant in all quantiles. The negative effects of interaction term revealed that domestic industry is the cause of over-consumption and emission of NR. The use of clean and green energy consumption is crucial for sustainable development. Policymakers need to design mechanism that promotes steward policies for domestic industry to discourage the use of NR, enhance local–international partnerships in low emission and energy-efficient technologies, and promote the use of renewable energy. These policies will help to achieve certain SDG’s goals such as (SDG-7: clean energy sources), (SDG-8: sustainable development goal); and (SDG-9: climate action).

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Fig. 1

Source APEC PSU (2022)

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Authors and Affiliations

  1. School of Economics, Bei**g Technology and Business University, Bei**g, People’s Republic of China

    Qasim Raza Khan, Tufail Muhammad, Noorulhaq Ghafoori & Mushtaq Ahmad

  2. UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia

    Ahsan Anwar

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  1. Qasim Raza Khan
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Contributions

QRK helped in conceptualization; QRK and AA helped in methodology; QRK and TM worked in formal analysis and investigation; QRK and AA contributed to writing—original draft preparation; and QRK, NG, and MA contributed to writing—review, graphical representation, and editing.

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Khan, Q.R., Anwar, A., Muhammad, T. et al. Asymmetric effects of high-tech industry and presence of pollution-haven hypothesis in APEC countries: fresh evidence with panel quantile regression. Clean Techn Environ Policy (2024). https://doi.org/10.1007/s10098-023-02703-z

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