The Relationship Between Innovation, Renewable Energy, Environmental Pollution, and Economic Growth in Vietnam

This study investigates the relationship between economic growth, technological innovation, renewable energy consumption, and CO₂ emissions in Vietnam from 1988 to 2021, using a Vector Error Correction Model. Three key findings emerged. First, economic growth remains strongly coupled with carbon emissions in the long run, indicating a fossil fuel-dependent economic structure. Second, technological innovation yields positive but limited short-term effects, requiring extended periods to achieve a full impact. Third, renewable energy exerts strong positive short-term effects, but negative long-term effects, reflecting structural economic shifts. This study proposes five policy recommendations: commercializing patent innovations, rapidly expanding renewable energy for immediate growth, decoupling growth from emissions, combining clean energy with technological advancement, and implementing policy reforms immediately rather than relying on long-term strategies alone.