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Unveiling CO 2 Emission Dynamics Under Innovation Drivers in the European Union

Author

Listed:
  • Nicoleta Mihaela Doran

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania)

  • Roxana Maria Bădîrcea

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania)

  • Elena Jianu

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania
    Faculty of Economic Sciences and Law, Pitești University Center, National University of Science and Technology POLITEHNICA Bucharest, 060042 Bucharest, Romania)

  • Maria Eliza Antoniu

    (Faculty of Economic Sciences and Law, Pitești University Center, National University of Science and Technology POLITEHNICA Bucharest, 060042 Bucharest, Romania)

  • Riana Maria Ciobanu

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania)

  • Ștefan Codruț Florian Ciobanu

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania)

Abstract

This study explores the complex relationship between innovation and carbon dioxide (CO 2 ) emissions across the primary, secondary, and tertiary sectors within the 27 European Union (EU) member states over the period 2017–2023. Drawing on a comprehensive dataset and grounded in theoretical frameworks, the research investigates how different innovation indicators—including broadband penetration, digital skills, public and business R&D expenditure, ICT training, and SME-driven innovations—affect sectoral CO 2 emissions. Using robust regression, the findings reveal a nuanced landscape: while ICT skills training, human resource mobility in science and technology, and SME business process innovations are associated with significant reductions in emissions, certain R&D investments and broadband penetration display positive correlations with emissions in specific service-oriented sectors. These results suggest that the environmental impacts of innovation are highly context-dependent and not uniformly positive. This study highlights the importance of strategically aligning innovation policies with sustainability objectives. Policymakers are encouraged to promote targeted digital training, support environmentally conscious R&D, and foster SME-led innovation practices. The results contribute to the growing discourse on sustainable innovation and provide actionable insights to advance the EU’s green transition.

Suggested Citation

  • Nicoleta Mihaela Doran & Roxana Maria Bădîrcea & Elena Jianu & Maria Eliza Antoniu & Riana Maria Ciobanu & Ștefan Codruț Florian Ciobanu, 2025. "Unveiling CO 2 Emission Dynamics Under Innovation Drivers in the European Union," Sustainability, MDPI, vol. 17(8), pages 1-28, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3463-:d:1633855
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    References listed on IDEAS

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    1. Mele, Marco & Costantiello, Alberto & Anobile, Fabio & Leogrande, Angelo, 2025. "Determinants of Building-Sector CO₂ Emissions in the EU: A Combined Econometric and Machine Learning Approach," MPRA Paper 127321, University Library of Munich, Germany.
    2. Aina Muska & Irina Pilvere & Ants-Hannes Viira & Kristaps Muska & Aleksejs Nipers, 2025. "European Green Deal Objective: Potential Expansion of Organic Farming Areas," Agriculture, MDPI, vol. 15(15), pages 1-22, July.

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