Regional issue, innovation, and the ecological footprint

Abstract

This paper models the relationship between economic development and environmental progress. It investigates the relationship between investment in innovation and uncontained emissions in the selected Russian regions from 2013 to 2018. The database contains information for 72 locations and is comprised of 432 observations (panel data, 72 regions multiplied by 6 years). Random-effects regression models have been applied to analyze panel data. In a study of 72 Russian regions over the period of 2013-2018, this research demonstrates that the growing research and development (R&D) intensity of regional firms leads to a larger ecological footprint and growing emission intensity. These effects are negatively moderated by the per capita income of the region?s residents and regional enrollment in higher education. The effects are positively moderated by the export intensity of regional firms. The results suggest that economic and ecological aspects of sustainable development are at odds with each other and indicate that regional policymakers should account for the negative ecological externalities of economic development when devising policies aiming to facilitate regional growth.