Abstract:
The debate on technological innovation shocks and its effect on the environment are of great interest to academicians and
environmentalists worldwide. At present, primary focus of this research is to investigate the asymmetric technology shocks
and its impact on CO2
emissions for BRICS economies. The linear and non-linear panel ARDL models are applied to compute
both short-run and long-run dynamics of technology shocks and CO2
emissions. Asymmetric estimates confer that a
positive shock in patents reduces the CO2
emissions by 0.418%, whereas negative shock increases the CO2
emissions by
0.854%. Contrariwise, the trademark positive shock increases the carbon emissions by 0.416% and vice versa. The non-linear
analysis provides an opportunity to measure the direction and magnitude of positive and negative shocks in technology on
the environmental quality of BRICS economies. Hence, policymakers and environmentalists should devise their strategies
by keeping in mind the impacts of positive and negative shocks.
