Evaluating the asymmetric effect of patents driven environmental technologies on environmental degradation in the E7 countries: An extended model of STIRPAT

This research employed an extended Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) modelling providing original empirical evidence on how technological innovation with the presence of green finance, energy transition vectoring renewable and non‐renewable energy, population, affluence, and financial development affect environmental sustainability measured on the carbon emissions and ecological consequences in E7 during the 1996–2019 period. The study applied mean group (MG), pooled mean group (PMG), and dynamic fixed effects (DFE) after conducting various preliminary tests. The findings predominantly revealed that renewable energy, green finance, and the patent in environmental technologies play an important role in mitigating environmental degradation. However, non‐renewable energy, financial development, population growth, and affluence escalate environmental degradation in the emerging countries under investigation. The outcome of this research proved conclusively that it is vital to introduce the patent on environmental technologies to encourage the collaboration on technology development related to global climate change. Furthermore, enhancing international collaboration in research and technology will positively affect local businesses through utilizing the modern climate change mitigation.