Toward Climate Change Resilience and the Carbon‐Neutral Transition in Emerging Economies Through Circular Technologies and Green Energy Transmission Systems

Abstract

Despite growing evidence on the environmental benefits of green innovation, empirical findings for emerging economies remain limited and inconclusive, particularly regarding the joint role of environmental patents and renewable energy in reducing carbon emissions. Given the rapid economic growth of these countries, it is important to understand how environmental patents and climate change mitigation technologies influence sustainable economic growth in emerging markets. Using robust heterogeneous panel estimation methods that account for cross‐sectional dependence, the results consistently show that green innovation, measured by environmental patents, and renewable energy support the carbon‐neutral transition by reducing carbon emissions in emerging economies. The findings demonstrate that while green innovations significantly reduce emissions, the emissions‐reducing impact of renewable energy adoption is quantitatively larger. In contrast, energy consumption remains an important contributor to emissions. Overall, the study highlights that promoting green innovation together with renewable energy adoption is important for supporting long‐term environmental sustainability and the transition to carbon neutrality in emerging economies.