Nexus between environmental innovation and ecological footprint in OECD countries: is there an environmental rebound effect?

This study empirically examines the effect of environmental innovation on ecological footprint using a panel smooth transition regression (PSTR) model for 33 OECD countries, over the period 1995-2019. The findings indicate that a rebound effect occurs when the level of environmental innovation surpasses the calculated threshold level (14.254%), suggesting that environmental innovations exert pressure on the environment. Existing empirical results point to a rebound effect, which refers to offsetting the gains from environmental innovation by channeling them into production and consumption.