Do green innovation and governance limit CO2 emissions: evidence from twelve polluting countries with panel data decision tree model

Abstract

We examine the effectiveness of green innovation on CO2 emissions in the top twelve polluting nations—China, the US, India, Russia, Japan, South Korea, Canada, Mexico, Turkey, Italy, Poland, and the UK—from 1996 to 2020. Using panel data fixed and random effect model and decision tree analysis, we found that industrialization, urbanization, and economic growth increase CO2 emissions, whereas green energy consumption and governance decrease CO2 emissions. In the panel data tree-based model, governance is in the second and third positions in the decision tree fixed, and random effect model. Green innovation is not statistically significant despite the expected negative sign. The findings suggest that policymakers should encourage investment in green energy production and governance to combat environmental degradation. Investment in green energy should be escalated to ensure energy efficiency in the long term.