Institutional and Technological Dynamics for Ecological Structural Change: An Econometric Analysis
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Chiara GRAZINI Department of Economics, Engineering, Society and Business Organization, University of Tuscia , Italy
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Giulio GUARINI Department of Economics, Engineering, Society and Business Organization, University of Tuscia, Italy
This paper investigates the dynamics between institutional and technological factors driving ecological structural change in OECD countries from 1990 to 2020 by employing a feasible generalised least squares estimation on panel data. In particular, it explores how the pro-environmental institutional attitude and the green technological gap co-evolve and shape the ecological transition. Grounded in the post‑Keynesian ecological macroeconomics, the analysis emphasises that green technological catching‑up processes depend not only on technological capabilities but also on supportive institutional environments.
Results indicate that environmental policy stringency positively influences technological advancement and green productivity. Indeed, robust institutional frameworks foster the diffusion of green technologies, reduce ecological disparities, and strengthen environmental performance. At the same time, findings suggest a positive impact of green innovations on pro-environmental institutional attitude. However, diminishing returns emerge as pro-environmental institutional attitude intensifies, suggesting the emergency of institutional and social resistance to continuous policy tightening. Overall, the study underscores how coherent ecological policies, institutional learning, and green absorptive capacities are key to narrowing the green technology gap and advancing green institutional change by highlighting the importance of sustained political commitment and international cooperation to ensure that ecological transition contributes to equitable and resilient economic development.
Copyright© 2025 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Article’s history: Received 5th of October, 2025; Received in revised form 29th of October, 2025; Accepted 24th of November, 2025; Available online: 30th of December, 2025. Published as article in the Volume XX, Winter, Issue 4(90), December, 2025.
Grazini, C., & Guarini, G. (2025). Institutional and Technological Dynamics to Ecological Structural Change: An Econometric Analysis. Journal of Applied Economic Sciences, Volume XX, Winter, 4(90), 647 – 657 https://doi.org/10.57017/jaes.v20.4(90).01
Acknowledgments/Funding: They state that no financial assistance was received for the work.
Conflict of Interest Statement: The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest. The authors declare that there are no patents or copyrights to be asserted that are relevant to the work in the manuscript.
Data Availability Statement: No new data were created or analysed in this study. Data sharing is not applicable to this article.
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