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Impact of innovation and economic structure on CO₂ emissions in Poland and Spain: Evidence from Bayesian Fourier autoregressive distributed lag modelling

Abstract

Objective: The article aims to determine the impact of innovation, the level of economic activity (measured as GDP per capita), and the added value of key economic sectors (agriculture, industry, and services) on CO₂ emissions in Poland and Spain, and to assess whether innovations could significantly reduce emissions considering economic structural differences and dynamics.

Research Design & Methods: The study employed a quantitative research design. It used Fourier autoregressive distributed lag (FARDL) and Bayesian Fourier autoregressive distributed lag (Bayesian FARDL) econometric models to analyse data from 1995 to 2022. The sample encompassed macroeconomic data for Poland and Spain.

Findings: The study revealed significant differences between Poland and Spain. In Poland, despite a higher number of patent applications, technological innovations did not significantly affect CO₂ emissions, indicating limited application in high-emission sectors. Conversely, in Spain, innovations positively impacted CO₂ emissions, particularly in energy-intensive sectors. Energy consumption strongly influenced emissions in both countries, with Spain showing a more pronounced long-term effect. GDP negatively affected CO₂ emissions in Poland over the long run, whereas the study did not identify such relationship for Spain. The industrial and service sectors significantly impacted emissions and innovation in Poland, while in Spain, the industrial sector and patent activity were crucial determinants.

Implications & Recommendations: The findings highlight the need for tailored economic and energy policy adjustments in both countries, especially focused on innovation, to enhance the effectiveness of their green transitions.

Contribution & Value Added: This article contributes by providing a comparative analysis of Poland and Spain using advanced econometric methods, identifying country-specific dynamics between innovation, sectoral structure, the level of economic activity, and CO₂ emissions, thus providing novel insights for policymaking in the context of sustainability. Moreover, the study applied a relatively new and advanced Bayesian Fourier ARDL modelling, enhancing the analysis’ methodological rigour.

Keywords

CO₂ emissions, innovation, economic development, sectoral analysis, Bayesian ARDL

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Author Biography

Błażej Suproń

Assistant Professor at the Faculty of Economics, West Pomeranian University of Technology in Szczecin, Poland. His research interests focus on data science and econometrics, particularly advanced Bayesian modelling, autoregressive models, machine learning methods, and ecological economics. He primarily employs quantitative research methods in his studies.

Irena Łącka

Professor at the Faculty of Economics, West Pomeranian University of Technology, Poland. Head of the Department of Economics, Finance and Accounting. Her research interests include determinants of economic growth, efficiency and productivity of universities and innovation systems, energy transformation, sustainable development, challenges of the modern economy, strategic and technological cooperation on a micro-, meso- and macro scale, clusters, cooperation between science and business, helix models, innovation of enterprises and the economy.

Agnieszka Brelik

Professor at the Faculty of Economics, West Pomeranian University of Technology, Poland. Head of the Department Regional and European Studies. Author of over 150 publications especially in the field of sustainable development. Participant of several dozen grants and projects, realised for National Science Center, polish ministries and central institutions and regional/ local governments. Her research interests include the economics of tourism and sustainable development.

Antonio Minguez Vera

Full Professor at the Faculty of Economics and Business, University of Murcia, Spain. His research has been highly cited internationally, demonstrating significant academic impact, particularly in the fields of ethics, corporate finance, board diversity, and financial economics. He has successfully led several research projects as principal investigator and contributed actively to numerous national and international research teams. His work is published in prestigious journals. His research interests include gender diversity, corporate finance and corporate governance.


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