Innovation as a shortcut to decarbonization: evidence from emerging markets beyond the environmental Kuznets Curve
Merve Sahin · Selim Zaim · Ibrahim Bague · Ali Reza Ghezel
Bussecon Review of Social Sciences · 2026 · Vol. 7 / Issue 3 · 01-10
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Abstract
Arising carbon emissions and accelerating industrialization have intensified concerns regarding sustainable development in emerging markets. This study examines whether innovation functions as a direct mechanism for decarbonization and whether innovation-driven environmental dynamics follow the Environmental Kuznets Curve (EKC) framework. Using panel data from emerging market economies over the period 2000–2020, the study applies fixed-effects estimation techniques to investigate both the linear and nonlinear effects of innovation on CO₂ emissions. Innovation is measured through research and development (R&D) expenditure, while industrialization, urbanization, trade openness, financial development, and ICT indicators are incorporated as control variables. The findings demonstrate that innovation significantly reduces CO₂ emissions, suggesting that technological advancement supports environmental sustainability through cleaner production systems and efficiency-enhancing mechanisms. However, the analysis does not support the existence of an innovation-driven EKC, as the nonlinear innovation term remains statistically insignificant. The study contributes to environmental sustainability literature by extending the EKC framework beyond conventional income-centered explanations and positioning innovation as a direct decarbonization mechanism in emerging economies. The findings further provide practical implications for policymakers seeking to accelerate low-carbon transitions through innovation-oriented industrial and technological policies.
Keywords: {'name': 'Innovation-Driven Decarbonization, Environmental Kuznets Curve, CO₂ Emissions, Emerging Markets, Sustainable Technological Innovation'}
Authors & affiliations
Merve Sahin
Ibn Haldun University
Selim Zaim
Ibn Haldun University
Ibrahim Bague
Ibn Haldun University
Ali Reza Ghezel
Ibn Haldun University
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