Political risk and green technology improvement: New insights from global evidence

Abstract

This study investigated the relationship between political risk and green innovation utilizing data from 128 countries worldwide from the period 1984–2020. First, we find that accompanying political risk reduction positively promotes green technology improvement, and this still holds after a series of robustness tests. Second, a sub-sample test based on high-income versus OECD countries notes that the positive effect of political risk on green technology improvement is more significant in the sample of non-high-income versus non-OECD countries. Finally, we test whether partisan competition and high-tech product exports moderate the effect of political risk on green innovation. The results indicate that these two factors positively moderate the impact of political risk on green innovation. Our findings suggest that lower political risk offers stable financial support and policy backing for green innovation activities to enable sustainable development.

Keywords

• D74
• Q55
• Q58