Diverging Paths in Environmental Performance: A Comparative Analysis of Innovation, Growth and Renewable Energy in OECD and BRICS Countries

Abstract

Combating global climate change requires urgent and differentiated strategies to reduce carbon dioxide (CO₂) emissions. The environmental performance trajectories of developed (OECD) and emerging (BRICS) economies represent a critical area of research, as they account for a significant portion of global emissions. This study aims to comparatively analyze the key determinants of CO₂ emissions in OECD and BRICS countries, focusing on 2021, which reflects the unique conditions brought about by the post-COVID-19 economic recovery. Using 2021 data obtained from the World Bank, a cross-sectional “snapshot” analysis was conducted using multiple regression methods. In the model, the dependent variable is total CO₂ emissions (kt); the independent variables are defined as ‘renewable energy consumption’, ‘GDP’, ‘urbanization’, and ‘total patent applications’ (innovation proxy). Empirical findings confirm that renewable energy consumption has a statistically significant and negative effect on CO₂ emissions. In contrast, GDP and urbanization were found to have a positive effect on emissions. It is noteworthy that innovation, measured by ‘total patent applications’, shows a weak or statistically insignificant effect on emission reduction. The study contributes to the literature by presenting an analysis of a critical period such as 2021 and highlighting the structural differences between the OECD and BRICS blocs. The results indicate that emission reduction policies should be designed according to countries' levels of development and the specificity of their innovation policies (specifically targeting green technologies), rather than a “one-size-fits-all” approach.