Green Trade and Cultural Innovation: Examining the Impact on GTFP and Greenhouse Gas Emissions in OECD Countries

This study investigates the impact of green trade exports (GTE) on green total factor productivity (GTFP) and environmental sustainability in OECD countries using panel data from 2003 to 2016. We employ linear regression models, polynomial models, and threshold regression techniques to analyze this relationship. Our findings reveal an inverted N-shaped curve between GTE and GTFP, with two turning points. The threshold regression results indicate that when clean energy is below 8.660%, a 1 unit increase in GTE decreases GTFP by 1.518 units. However, when clean energy exceeds this threshold, a 1 unit increase in GTE increases GTFP by 1.056 units. For R&D, the effect of GTE on GTFP changes from -3.165 to 1.193 as R&D exceeds the threshold of 0.664%. Additionally, we find that GTE has a lagged effect on increasing CO2 emissions, with coefficients of 0.0234 and 0.0278 for 1-year and 2-year lags, respectively. The interaction between clean energy and GTE reduces CO2 emissions by 0.00234 units and PM2.5 by 0.0145 units. These results provide important insights for policymakers in developing countries seeking to participate effectively in the global industrial chain while promoting sustainable development.