IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i8p3463-d1633855.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/8/3463/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/8/3463/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Garrone, Paola & Grilli, Luca, 2010. "Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation," Energy Policy, Elsevier, vol. 38(10), pages 5600-5613, October.
    2. Dervis Kirikkaleli & Minhaj Ali, 2024. "Resource efficiency, energy productivity, and environmental sustainability in Germany," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 13139-13158, May.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Edquist, Harald & Bergmark, Pernilla, 2024. "How is mobile broadband intensity affecting CO2 emissions? – A macro analysis," Telecommunications Policy, Elsevier, vol. 48(2).
    5. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    6. Lee, Ki-Hoon & Min, Byung & Yook, Keun-Hyo, 2015. "The impacts of carbon (CO2) emissions and environmental research and development (R&D) investment on firm performance," International Journal of Production Economics, Elsevier, vol. 167(C), pages 1-11.
    7. Vincenzo Verardi & Christophe Croux, 2009. "Robust regression in Stata," Stata Journal, StataCorp LLC, vol. 9(3), pages 439-453, September.
    8. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    9. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    10. Fatemeh Dehdar & Nuno Silva & José Alberto Fuinhas & Matheus Koengkan & Nazia Nazeer, 2022. "The Impact of Technology and Government Policies on OECD Carbon Dioxide Emissions," Energies, MDPI, vol. 15(22), pages 1-17, November.
    11. Apergis, Nicholas & Eleftheriou, Sofia & Payne, James E., 2013. "The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: Evidence from European manufacturing firms," Ecological Economics, Elsevier, vol. 88(C), pages 57-66.
    12. Jing Wang & Yubing Xu, 2021. "Internet Usage, Human Capital and CO 2 Emissions: A Global Perspective," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meng, Chang & Ghafoori, Noorulhaq, 2024. "The economic impact of terrorism in South Asia," Socio-Economic Planning Sciences, Elsevier, vol. 96(C).
    2. Omaima A.G. Hassan & Peter Romilly, 2018. "Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 893-909, November.
    3. Schober, Dominik, 2013. "Static vs. dynamic impacts of unbundling: Electricity markets in South America," ZEW Discussion Papers 13-033, ZEW - Leibniz Centre for European Economic Research.
    4. Miomir Jovanović & Ljiljana Kašćelan & Aleksandra Despotović & Vladimir Kašćelan, 2015. "The Impact of Agro-Economic Factors on GHG Emissions: Evidence from European Developing and Advanced Economies," Sustainability, MDPI, vol. 7(12), pages 1-21, December.
    5. Chris Belmert Milindi & Roula Inglesi-Lotz, 2023. "Impact of technological progress on carbon emissions in different country income groups," Energy & Environment, , vol. 34(5), pages 1348-1382, August.
    6. Olusegun Ayodele Akanbi & Rashid Sbia, 2018. "Investigating the twin-deficit phenomenon among oil-exporting countries: Does oil really matter?," Empirical Economics, Springer, vol. 55(3), pages 1045-1064, November.
    7. Skare, Marinko & PORADA-ROCHON, Małgorzata, 2022. "The role of innovation in sustainable growth: A dynamic panel study on micro and macro levels 1990–2019," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    8. Kahouli, Bassem, 2018. "The causality link between energy electricity consumption, CO2 emissions, R&D stocks and economic growth in Mediterranean countries (MCs)," Energy, Elsevier, vol. 145(C), pages 388-399.
    9. Balaga Mohana Rao & Puja Padhi, 2020. "Common Determinants of the Likelihood of Currency Crises in BRICS," Global Business Review, International Management Institute, vol. 21(3), pages 698-712, June.
    10. Tao, Xuezong & Zhu, Lichao, 2024. "Drivers of transportation CO2 emissions and their changing patterns: Empirical results from 18 countries," Journal of Transport Geography, Elsevier, vol. 119(C).
    11. Sinha, Avik & Sengupta, Tuhin & Saha, Tanaya, 2020. "Technology policy and environmental quality at crossroads: Designing SDG policies for select Asia Pacific countries," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    12. John Michael, Riveros-Gavilanes, 2020. "Estimating the Social Welfare Function of Amartya Sen for Latin America," MPRA Paper 111268, University Library of Munich, Germany, revised 08 Feb 2021.
    13. Apergis, Nicholas & Eleftheriou, Sofia & Payne, James E., 2013. "The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: Evidence from European manufacturing firms," Ecological Economics, Elsevier, vol. 88(C), pages 57-66.
    14. Chesser, Michael & Hanly, Jim & Cassells, Damien & Apergis, Nicholas, 2018. "The positive feedback cycle in the electricity market: Residential solar PV adoption, electricity demand and prices," Energy Policy, Elsevier, vol. 122(C), pages 36-44.
    15. Purnima PUROHIT & Katsushi S. Imai & Kunal Sen, 2017. "Do Agricultural Marketing Laws Matter for Rural Growth? Evidence from the Indian States," Discussion Paper Series DP2017-17, Research Institute for Economics & Business Administration, Kobe University.
    16. Jiangjiang Guo & Ting Ji & Wenqian Zhang & Lingfeng Dong, 2023. "Understanding Sustained Knowledge Contribution from a Motivation Crowding Perspective: A Case Study in a Chinese Q&A Community," Sustainability, MDPI, vol. 15(3), pages 1-13, January.
    17. Boateng, Elliot & Agbola, Frank W. & Mahmood, Amir, 2021. "Foreign aid volatility and economic growth in Sub-Saharan Africa: Does institutional quality matter?," Economic Modelling, Elsevier, vol. 96(C), pages 111-127.
    18. D’Amelio, Matilde & Garrone, Paola & Piscitello, Lucia, 2016. "Can Multinational Enterprises Light up Developing Countries?," World Development, Elsevier, vol. 88(C), pages 12-32.
    19. Jorge José Luis Reynoso-González. & Adrián De León Arias., 2021. "Crecimiento económico y gasto público en salud según población objetivo en México. (Economic Growth and Public Spending on Health According to Target Population in Mexico)," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 89-114, May.
    20. Ortiz, Cristian & Alvarado, Rafael & Salinas, Aldo, 2019. "The effect of military spending on output: New evidence at the global and country group levels using panel data cointegration techniques," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 402-414.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3463-:d:1633855. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.