Eco-innovation and determinants of GHG emissions in OECD countries

The fight against climate change entails a universal commitment, given the threat of destructive changes to the planet, all countries have to alter how they act in order to slow its progress. This research provides evidence on the strongest determinants of greenhouse gas emissions (GHG). Using a panel data sample of OECD countries during the period 2011-2018, the analysis is carried out in two stages. In the first stage, DEA-Bootstrap and the Malmquist Index are applied to measure eco-innovation and productivity changes occurring in the eight years under analysis. In the second stage, the two-step Generalized Method of Moments is used to study the connection between eco-innovation and GHG emissions, incorporating other factors that a priori could be expected to affect emissions, such as productivity, environmental policies and waste management. The results reveal that the countries analysed have introduced new technologies in an attempt to curb global warming. It is also observed that ecoinnovation, CO 2 productivity and environmental policies have an important impact on the mitigation of emissions. International treaties should seek to strengthen these aspects and halt the cyclical effect of emissions.