The role of environmental technology for energy demand and energy efficiency: Evidence from OECD countries

The present study aims to fill an important research gap by investigating the role of environmental-related technologies on energy demand and energy efficiency in a sample of 28 OECD economies. The current study utilizes annual data for the period of 1990–2014 and employs panel estimation techniques, which addresses the issues of cross-sectional dependence, fixed effect, and endogeneity. The results, across various estimates, confirm that environmental technology has a substantial negative influence on energy consumption and also plays an important role in improving energy efficiency by reducing energy intensity. These evidences suggest that environmental technology helps the OECD economies to reduce their overall energy consumption and improves overall energy efficiency in their respective countries. The comprehensive empirical outcomes document that financial development and income are the key determinants of energy demand. Given these results, the study proposes several fruitful implications regarding sustainable development goals of OECD countries. •The effect of environmental technology on energy demand and efficiency.•Comprehensive panel data and econometric techniques are used.•The evidences confirm that environmental technology reduces energy consumption.•The environmental technology also promotes energy efficiency.•The study offers important policy related implications.