Navigating Emission Metrics: Examining the Role of Eco-Innovation, Energy Efficiency, and Institutional Quality in OECD Countries


  • Somia Iram Ph.D. Scholar, School of Economics, Bahaudin Zakariya University, Multan, Pakistan.
  • Fatima Farooq Associate Professor, School of Economics, Bahaudin Zakariya University, Multan, Pakistan.



Eco-Innovation, Energy Efficiency, Consumption Based Carbon Emission, Institutional Quality, Environmental Performance


Purpose: Main purpose of this paper is to compare and contrast the factors affecting consumption-based emissions (CCO2) and production-based emissions (PCO2) accounting approaches by considering role of eco innovation, energy efficiency, imports, exports and institutional quality under Environment Kuznets Curve (EKC) hypothesis for OECD countries.

Design/Methodology/Approach: This study investigated research models based on EKC hypothesis and Porter’s hypothesis (PH) by utilizing the data set of 1996 to 2020. This study utilized second generation econometric techniques (Cross sectional dependence and slope heterogeneity tests). Set of regressions and models were estimated by using sys-GMM technique to get robust results after applying the panel unit root test by using E-views.

Findings: Result of sys-GMM, supporting the presence of EKC for production-based emissions but EKC doesn't exist for consumption-based emissions. Secondly, the impact of imports and exports is divergent across emission calculation approaches. Imports are significant for CCO2 but have no effect on PCO2. Impact of exports is significant and negative on both emission approaches. Coefficients of eco-innovation (EI) and Energy efficiency (EE) are significant and negative, yet quality of institutions (INQ) have moderating role for enhancing eco-innovation performance in OECD countries.

Implications/Originality/Value: Empirical findings of study provided useful insight for policy makers and researchers that both emission calculation approaches (PCO2 and CCO2) have their respective importance depending on the nature of the analysis. In the case of OECD countries, CCO2is more relevant because in OECD countries emission is more related to consumption patterns than production activities. Further, these countries must emphasize synergistic relationship between EI and INQ for enhancing, energy efficiency and eco-innovation performance.


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How to Cite

Iram, S., & Farooq, F. (2024). Navigating Emission Metrics: Examining the Role of Eco-Innovation, Energy Efficiency, and Institutional Quality in OECD Countries. Pakistan Journal of Social Sciences, 44(1), 25-39.