Positive and Negative Effects of Research and Development

• Main Authors: Mohd Shahidan Shaari, Diana Nabila Chau Abdullah, Nur Salimah Binti Alias, Nor Syamimi Mohamed Adnan
• Format: Article
• Language: English
• Published: EconJournals 2016-12-01
• Series: International Journal of Energy Economics and Policy
• Subjects: research and development; economic growth; carbon dioxide emission
• Online Access: https://dergipark.org.tr/tr/pub/ijeeep/issue/31919/351138?publisher=http-www-cag-edu-tr-ilhan-ozturk

This study aims to examine the effects of research and development expenditure on economic growth and carbon dioxide emission in the panel data for the period of 1996-2011 from 5 nations (Germany, Russian Federation, United Kingdom, United States and Canada). The panel co-integration was conducted and the results show that there is co-integrated relationship among the variables (R&D, GDP, Energy Use and Carbon Dioxide Emission). Then the FMOLS test was performed and the findings explain that energy use and R&D are the determinants of GDP. Results from FMOLS show that energy use and R&D are the determinants of GDP. Energy use and GDP are the determinants of carbon dioxide emission. Results from DOLS show that R&D is important to boost economic growth while energy use, GDP and R&D can have deleterious effects on carbon dioxide emission. Therefore, it is important to control the R&D expenditure to balance economic growth and environmental conservation.