Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics

Using a panel dataset of six emerging economies from 1990 to 2021, the study analyzed the moderating influence of financial institutions and markets on the deployment of Climate Mitigation Innovation (CMI) and its impact on carbon emissions. Our results from BRIICS countries (i.e. Brazil, Russia, In...

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Main Authors: Raphael W. Apeaning, Musah Labaran
Format: Article
Language:English
Published: Elsevier 2025-04-01
Series:Innovation and Green Development
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2949753125000086
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author Raphael W. Apeaning
Musah Labaran
author_facet Raphael W. Apeaning
Musah Labaran
author_sort Raphael W. Apeaning
collection DOAJ
description Using a panel dataset of six emerging economies from 1990 to 2021, the study analyzed the moderating influence of financial institutions and markets on the deployment of Climate Mitigation Innovation (CMI) and its impact on carbon emissions. Our results from BRIICS countries (i.e. Brazil, Russia, India, Indonesia, China, and South Africa) reveal that sound financial systems significantly amplify the efficacy of CMI in lowering CO2 intensity. This research contributes to the existing body of knowledge by elucidating the conditional dynamics between financial development, technological innovation, and emission outcomes. Insights from the study underscore that emerging countries should strengthen their financial sectors to effectively leverage CMI for substantial emission reductions. Ultimately, insights gleaned from this study contribute to the growing literature on green innovation and green finance and serve as a basis for policymakers to craft strategies that enhance sound financial environment while promoting green technological innovations.
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series Innovation and Green Development
spelling doaj-art-dfbce1c0ad094aa89e11474298a84a752025-08-20T02:54:39ZengElsevierInnovation and Green Development2949-75312025-04-014210021110.1016/j.igd.2025.100211Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economicsRaphael W. Apeaning0Musah Labaran1Department of Technology and Society, Stony Brook University, Stony Brook, NY, USA; Corresponding author.Komfo Anokye Teaching Hospital Cardiology Unit, Kumasi, GhanaUsing a panel dataset of six emerging economies from 1990 to 2021, the study analyzed the moderating influence of financial institutions and markets on the deployment of Climate Mitigation Innovation (CMI) and its impact on carbon emissions. Our results from BRIICS countries (i.e. Brazil, Russia, India, Indonesia, China, and South Africa) reveal that sound financial systems significantly amplify the efficacy of CMI in lowering CO2 intensity. This research contributes to the existing body of knowledge by elucidating the conditional dynamics between financial development, technological innovation, and emission outcomes. Insights from the study underscore that emerging countries should strengthen their financial sectors to effectively leverage CMI for substantial emission reductions. Ultimately, insights gleaned from this study contribute to the growing literature on green innovation and green finance and serve as a basis for policymakers to craft strategies that enhance sound financial environment while promoting green technological innovations.http://www.sciencedirect.com/science/article/pii/S2949753125000086Climate change mitigation innovationGreen innovationFinancial developmentCO2 reductionEmerging economies
spellingShingle Raphael W. Apeaning
Musah Labaran
Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
Innovation and Green Development
Climate change mitigation innovation
Green innovation
Financial development
CO2 reduction
Emerging economies
title Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
title_full Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
title_fullStr Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
title_full_unstemmed Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
title_short Does financial development moderate the impact of climate mitigation innovation on CO2 emissions? Evidence from emerging economics
title_sort does financial development moderate the impact of climate mitigation innovation on co2 emissions evidence from emerging economics
topic Climate change mitigation innovation
Green innovation
Financial development
CO2 reduction
Emerging economies
url http://www.sciencedirect.com/science/article/pii/S2949753125000086
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AT musahlabaran doesfinancialdevelopmentmoderatetheimpactofclimatemitigationinnovationonco2emissionsevidencefromemergingeconomics