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

Nicoleta Mihaela Doran (), Roxana Maria Bădîrcea, Elena Jianu, Maria Eliza Antoniu, Riana Maria Ciobanu and Ștefan Codruț Florian Ciobanu
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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
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

Sustainability, 2025, vol. 17, issue 8, 1-28

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.

Keywords: innovation; digitalization; environment; sustainability; CO 2 emissions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:8:p:3463-:d:1633855

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