Unlocking Japan’s low-carbon future: asymmetric effects of technological innovation, and economic growth on carbon emissions

The dynamic interplay between technological innovations, natural resources, and CO 2 emissions carries significant ecological consequences. Despite its importance, this field remains underexplored by environmentalists, yielding vague and inconclusive outcomes. Furthermore, these studies often lack a precise examination of natural resources' role in shaping environmental quality. Recognizing the imperative need for a more comprehensive and rigorous analysis of the complexities involved in studying CO 2 , this research delves into the asymmetric impact of technological innovation and natural resources on CO 2 . It does so while taking into account the symmetric influence of economic growth and trade openness over the period from 1980 to 2020. To unravel these connections, the study utilizes the Nonlinear Autoregressive Distributed Lag (NARDL) model and the dynamic multiplier technique. The findings stemming from the NARDL analysis and dynamic multiplier approach reveal that positive shifts in technological innovation and natural resources lead to a reduction in CO 2 emissions, while negative shifts result in an increase. Conversely, trade openness and economic growth are identified as factors that stimulate CO 2 , potentially compromising ecological integrity. The empirical insights gleaned from this study pave the way for a range of policy recommendations that can benefit Japan in its pursuit of environmental sustainability.