Do higher education research and development expenditures affect environmental sustainability? New evidence from Chinese provinces

Even though higher education R&D expenditures (HEEXP) are important determinants of economic growth that facilitate science, technology, new ideas, and innovation, yet its effect on environmental sustainability remains unexplored. This paper examines the nexus between HEEXP and carbon dioxide emissions (CO(2)e), followed by control variables such as electricity consumption (EC), foreign direct investment (FDI), gross domestic product (GDP), and total population (TP) for the period 2000Q1–2019Q4. Data were evaluated using different tests, e.g., the cross-sectional dependence test, cross-sectionally augmented Dickey-Fuller unit root test, Westerlund error-correction–based panel cointegration test, mean group, augmented mean group, common correlated effects mean group, and Dumitrescu-Hurlin panel causality test. First, the results validated the cointegration association among HEEXP, EC, FDI, GDP, TP, and CO(2)e. Second, the finding showed significant long-term negative nexus between HEEXP and CO(2)e. Third, the findings indicated that electricity consumption, foreign direct investment, gross domestic product, and total population are the important factors that intensify the overall situation of CO(2)e. Fourth, the results indicated that there exists bidirectional causality between EC and CO(2)e; FDI and CO(2)e; GDP and CO(2)e; POP and CO(2)e; and HEEXP and CO(2)e. This paper’s findings call for devising policies and strengthening financial support to induce higher education for developing green patents.