The Role of Technological Innovation in a Dynamic Model of the Environmental Supply Chain Curve: Evidence from a Panel of 102 Countries

Abstract

Advancing smart production systems for green production remains a crucial priority for manufacturers, while the vision to achieve green supply chain management process (GSCMP) remains obstructed due to using less fuel-efficient technologies. This study suggested an intelligent logistics design that infused technological indicators with logistics performance indices (LPIs) to minimize carbon damages in a panel of 102 countries. The study used patent applications and trademark applications to analyze the technological progress, whereas LPIs—i.e., LPI-1 for assessing quality and competence services, and LPI-2 for trade and transport infrastructure—are used to determine supply chain management process across countries. The results show that carbon damages follow a U-shaped structure with technology-induced LPIs (TI-LPIs) and GDP per capita. The country’s GDP per capita and TI-LPIs decrease carbon damages up to US$15,000,000, while the moderation of patents application (and trademark applications) with LPI1 and LPI2 substantially decreases carbon damages up to US$13,800,000 (US$34,100,000) and US$6,100,000 (US$20,200,000), respectively. The causality estimates confirmed the growth-led carbon damages, technology-led carbon damages, growth-led logistics indices, and technology-led growth across countries. The results emphasized the need to move forward by adopting fuel-efficient technologies to minimize carbon damages across countries.