Entrepreneurship, innovation and sustainability: testing environmental kuznets curve hypothesis in developed countries

Abstract EN

This paper aims to examine the impact of entrepreneurship and innovation on sustainability, using CO2 emissions as dependent variable, and entrepreneurship computed by Total Early-Stage Entrepreneurial Activity (TEA) and R&D expenditure (RDE) to measure innovation, as independent variables.

Panel data has been used to investigate the existence of the EKC in 19 developed countries covering 2001 to 2019.

The results supported the evidence of inverted N-shaped pattern of the EKC hypothesis is confirmed.

The estimation results of GLS panel data model indicated to a positive impact of (TEA) and a negative impact of innovation on environmental degradation.