Impact of Green Technology and Innovation on C02 Emissions in Pakistan

The primary objective of this study is to examine the relationship between green innovation, Renewable Energy Consumption, GDP, Financial development index with CO2 emissions using time series data from 1992 to 2022 sourced from World Development Indicators. C02 emissions were a dependent variable, while independent variables include green innovation, renewable energy consumption, GDP and Financial development. Correlation and ARDL models were employed to identify the behavior of variables during study period. The findings reveal that renewable energy consumption exerts a strong and statistically significant negative effect on CO₂ emissions. The magnitude of the coefficient suggests that an expansion in renewable energy use leads to a substantial reduction in carbon emissions. Innovation also shows a negative association with emissions, although the effect is only weakly significant, indicating that technological progress may contribute to environmental improvement when it is efficiency-driven or environmentally oriented. In contrast, economic growth displays a positive and statistically significant impact on CO₂ emissions, while financial development index shows a positive but statistically insignificant.