The impact of technological innovations and economic growth on CO2 emissions in the global context

Abstract

This study examines how technological innovation and economic growth influence carbon dioxide (CO2) emissions across 83 countries from 1996 to 2018. Using a hybrid panel modeling approach, we account for cross-country heterogeneity through a data-driven income classification. The results reveal that in high- and upper-middle-wealth countries, increased R&D is associated with significant emissions reductions. In contrast, lower-middle-wealth countries show no significant effect, highlighting the need for complementary institutional and economic capacity. These findings underscore the importance of tailored climate policies that reflect countries’ varying abilities to benefit from innovation.