The nexus of environment-related technologies and consumption-based carbon emissions in top five emitters: empirical analysis through dynamic common correlated effects estimator

Climate action got attention from the United Nation’s Sustainable Development Goals (SDGs). Although a large number of studies are investigating the said phenomenon, however, the literature on the top five responsible countries is unable to evaluate the role of environment-related technologies (ERTs) and institutional quality (IQ). The top five consumption-based carbon dioxide (CBCO₂) emitting economies, i.e., China, India, Japan, Russia, and the USA, are considerable stakeholders in this challenge. To fill this void, with the latest data available from 1992 to 2017, short- and long-run relationships are estimated with dynamic common correlated effects estimator and augmented mean group in the framework of EKC hypothesis. Reported results indicate the negative effect of ERTs and IQ towards CBCO₂, which means that adoption of ERTs and better IQ is supportive in controlling environmental degradation. Findings are also robust to the policy implications for the UN’s SDGs.