Analyzing The Impact Of Eco-innovation On Carbon Emissions: A Comparative Anaysis Between Oecd And Brics Countries

Considering the current environmental and resource problems associated with climate change,energy and other services,and ecosystems,it is essential for international bodies and policymakers at both the domestic and international levels to advocate for significant changes in most areas of contemporary resource use and connections with the environment.This present study aimed to assess the impact of Eco-innovation on carbon emissions in OECD and BRICS countries.However,34 OECD and 5 BRICS countries were sampled in a panel to carefully understand the phenomenon.The study provides an opportunity to explore cross-country similarities and differences which also enable regional policymakers to identify good practices and lessons to be learn towards best practice in adoption of new technology on environmental protection.The data for the study were sourced from OECD database and World Bank’s World Development Indicators from 2006 to 2019.Numerous econometric approaches were followed to arrive the conclusion of this study.Econometric approaches such as unit root rests,correlation matrix,cointegration test,Granger causality test,ordinary least square regression method,and fully modified ordinary least square regression method.The findings of the study suggests that eco-innovation could positively and negatively impact carbon emissions regarding the kind of proxy used.From the findings,it was realized that energy intensity,and patents positively impact carbon emission,hence a percentage point increase in energy intensity could lead to an increase in carbon emission by 0.677% and 0.705%while a percentage increase in patent could also lead to 0.073% and 0.087% of carbon emission in OECD countries,respectively.But for BRICS countries,a percentage point increase in energy intensity could lead to 0.202% carbon emission at a 1% significance level.Also,a percentage point increase in patent could lead to 0.126% and 0.087% carbon emission at a 1%significance level,respectively.On the other hand,research and development expenditure seemingly contribute to carbon emission reduction,where a percentage point increase in research and development expenditure could lead to 0.032% carbon emission reduction.But in BRICS countries sample,the study found that research and development positively impact carbon emission.This implies that increase in real income could encourage research and development and reduce energy intensity.Moreover,to ensure low carbon economy,conservation policies that support reduction in energy intensity,strengthening of environmental regulations,and improving research and development should be encouraged.