Will the Advancement of Knowledge-Based Economy Lead to Green Economic?

Extended Abstract
Introduction and

The knowledge-based economy is one the factors of economic growth and development in countries, which has always been the focus of various governments. Advanced economies such as those of North America, Europe, or East Asia have achieved prosperity, independence, economic and political power in the past years by focusing on this type of economy. Therefore, the current study tries to investigate the effect of the innovation index on the green GDP by using Engel-Granger causality and past studies.

In this article, an attempt has been made to first use the Granger-parasitic method, which is used to detect the causality between time series, and then the Autoregressive Distributed Lag (ARDL) method to investigate the relationship between variables and the data needed in this study during the years 1995-2020 were collected from various sources, including the World Bank and the statistical yearbook of Iran. The results showed that fuel energy consumption, labor force, innovation index, and education index with green GDP do not cause Granger causality to each other, but Granger causality from green GDP to capital stock and vice versa (bidirectional relationship between them). It also flows from green growth to the education index and vice versa.

The results in the auto regression method with a broad interval showed that the partial elasticities of production for the inputs of fuel energy consumption, labor force, capital stock, human capital, global innovation index and education index are the same coefficients of the variables in the production function. Considering that the elasticities of inputs during production and in different years are constant in the Cobb-Douglas function; It can be interpreted in this way that the elasticity of green GDP with one break, human capital, global innovation index, global innovation index with one lag, education index and education index with one lag are 0.22, 0.21, 0.18, 0.35, 0.51 and 0.97 respectively.

As a result, it can be said that the development of a knowledge-based economy in Iran is not friendly to nature and creates CO2 and has a negative effect on green GDP.