Role of economic growth, renewable energy, and technological innovation to achieve environmental sustainability in Kazakhstan

Abstract

Global climate change caused by Greenhouse gases (GHGs), particularly carbon dioxide (CO₂) emissions, poses incomparable threats to the environment, development, and sustainability. This research investigates the potential of economic growth, renewable energy use, and technological innovation to achieve environmental sustainability by reducing CO₂ emissions in Kazakhstan. Time series data from 1996 to 2018 were utilized by applying the Dynamic Ordinary Least Squares (DOLS) method. The DOLS estimate findings show that the coefficient of economic growth is positive and significant with CO₂ emissions, indicating a 1% increase in economic growth is related to a 0.34% rise in CO₂ emissions. Moreover, the estimated long-run coefficient of fossil fuel consumption is positive and significant which reveals that an increasing 1% of fossil fuel energy use is linked with a rising of 6.99% CO₂ emissions. Furthermore, the coefficient of renewable energy use is negative and significant, which indicates that increasing renewable energy use by 1% is associated with CO₂ emissions reduction by 0.38% in the long run. In addition, increasing technological innovation significantly lowers CO₂ emissions, implying that a 1% increase in the number of patent applications is linked to a 0.15% reduction in CO₂ emissions. The empirical findings reveal that economic growth and fossil fuel consumption increase CO₂ emissions in Kazakhstan while increased renewable energy use and technological innovation help to achieve environmental sustainability by reducing CO₂ emissions. This article provides policy recommendations aimed at a low-carbon economy, promoting renewable energy use, financing technological advancement, and environmental sustainability in Kazakhstan.