Evaluating spatial spillover and non-linear effects of green innovation on environmental balance: A global perspective
Naqvi S.K.H. Haq M. Naveed A. Zhuparova A. Doszhan R.
December 2025Elsevier B.V.
Environmental Challenges
2025#21
This study investigates the spatial spillover and non-linear effects of green innovation (Gi) on environmental balance (EB) in the context of environmental challenges. Specifically, it aims (i) to analyze the spatial spillover effects of Gi on EB at local and global levels and (ii) to examine the linear and non-linear impacts of Gi on EB, following an inverted U-shaped pattern. Using spatial econometric techniques and panel data from 60 global economies (1990–2022), the study confirms significant spatial spillovers of Gi on EB. The empirical results show that the effects of Gi on EB decompose into local (64.7%), global spillover (35%), and feedback (0.3%) respectively. Initially, Gi exacerbates EB by widening the ecological footprint-biocapacity gap but improves it beyond a critical threshold (40.522), demonstrating a non-linear and U-shaped relationship between Gi and EB. A positive spatial relationship in EB is observed with high-high and low-low agglomeration patterns. Globalization (Gb) has mixed effects, negatively impacting EB locally and globally but showing positive effects when interacting with Gi. The findings have important policy implications for sustainable environmental practices at a global scale.
Biocapacity , Ecological footprint , Environmental balance , Green innovation , Spatial analysis
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University of Kotli, Azad Jammu & Kashmir, Pakistan
International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan
Department of Business Development and Technology (BTECH), Aarhus University, Denmark
Almaty Management University, Kazakhstan
National Academy of Sciences of Kazakhstan, Kazakhstan
Kazakh-British Technical University, Kazakhstan
University of Kotli
International Institute of Islamic Economics
Department of Business Development and Technology (BTECH)
Almaty Management University
National Academy of Sciences of Kazakhstan
Kazakh-British Technical University
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