Divergent impact of green and non-green technological innovations on the dynamics between renewable energy, economic growth, and the environment

As the world accelerates its transition to clean energy (SDG 7), the economic (SDG 8) and environmental (SDG 13) ramifications are increasingly debated, reaffirming the vital importance of technological innovation (SDG 9). Technological innovation—categorized as green and non-green—differs significantly in terms of novelty, knowledge integration, spillover effects, and technological capabilities. Although renewable energy is a hallmark of green innovation, it can also exhibit non-ecological and economic challenges, particularly across diverse regional contexts. To address these complexities, this study rigorously investigates how the green and non-green technological innovations moderate the relationship between renewable energy consumption, economic growth, and CO₂ emissions in ten leading renewable energy-producing countries—classified as developed and developing—over the period 2007 to 2020. By employing advanced methodologies such as Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Quantile Regression, the analysis reveals striking contrasts: In developed nations, green technological innovation, in conjunction with renewable energy, stimulates economic growth while effectively lowering emissions. Conversely, non-green technological innovation tends to have detrimental effects. In developing countries, however, non-green technological innovation, when allied with renewable energy, supports economic growth and curtails emissions. In contrast, the presence of green technological innovation hampers growth and exacerbates emissions. The results of this study highlight the importance of tailoring technological innovation strategies to align with economic development objectives while considering environmental implications, particularly within the renewable energy sector, to ensure a sustainable energy future.