A New Perspective on Technology, Productivity, and Environmental Sustainability in the European Union

This study examines the relationship between economic growth, energy consumption, technology, and productivity intensive technology in the context of environmental degradation across selected European Union countries from 1996 to 2021. Utilizing the cross sectionally augmented autoregressive distributed lag model (CS-ARDL) and the load capacity factor as an environmental proxy, the findings confirm environmental kuznets curve (EKC) hypothesis indicating that economic growth continues to exert pressure on the environment. While energy consumption significantly contributes to environmental degradation, contrary to popular belief, technological advancements alone do not mitigate this issue. Instead, the study highlights that productivity intensive technologies are more effective in reducing environmental degradation. Policy recommendations emphasize the need for green growth strategies, energy efficiency improvements, sectoral energy quotas, and international cooperation in technology sharing. Special attention should be given to ensuring that technological development increases productivity and reduces environmental degradation. The findings contribute to the literature by highlighting the significance of aligning productivity and technological advancement for sustainable environmental outcomes.