Green Energy and Technological Innovation Toward a Low-Carbon Economy in Bangladesh

This study aims to investigate the influences of green energy, technological innovation, economic growth, urbanization, and labor force on the low-carbon economy in Bangladesh. Bangladesh was chosen for this study as the country in the sixth most vulnerable nation, and the results of climate change on the country’s ecology and economy have been devastating. By using yearly data extending from 1990 to 2020, this research employed the autoregressive distributed lag (ARDL) technique to explore the connections between explained and explanatory factors across both the short and long term. The ARDL bounds test decisions pointed to a long-term connection between the variables. The empirical results revealed that a 1% increase in economic growth, urbanization, and labor force would lead to 1.09%, 1.14%, and 0.19% increase in carbon economy in the long run, while 1.67%, 1.50%, and 0.29% increase in the short run, respectively. However, the findings indicated that a 1% boost in green energy utilization and technology innovation would result in a 0.21% and 0.18% decline in the carbon economy in the long run, whereas 0.15% and 0.10% drop in the short run, respectively. The outcomes of the investigation demonstrated that economic growth, urbanization, and labor force all adversely impact the low-carbon economy, making green energy utilization and technological innovation the best crucial approaches to maintain environmental sustainability. The study’s findings specify a policy structure for developing a thorough tactic to stimulate environmental sustainability in Bangladesh, with a focus on ecological innovation, green energy utilization, and controlled urbanization. This article put forward policy implications aimed at a low-carbon economy, promoting green energy use, financing technological advancement, sustainable urbanization, and educating the labor force, to achieve environmental sustainability and emission reduction in Bangladesh.