The role of higher education and institutional quality for carbon neutrality: Evidence from emerging economies

Economic development is frequently held accountable for environmental degradation, a situation that is particularly dire in E-7 economies. This problem is further exacerbated by inadequate education on its repercussions. Previous studies have explored various socioeconomic determinants of CO2 emissions, but the effects of education and institutional quality remain underexplored. Using data from 1995 to 2020 for E-7 economies, this study fills the gap by investigating the link between higher education, institutional quality, and CO2 emissions, factoring in R&D's role. Our findings reveal that better education and improved institutional quality significantly decrease emissions, a trend most pronounced in countries with stronger institutions. Interestingly, the role of R&D in emissions diverges based on institutional quality, showing a positive correlation in countries with lower and a negative correlation in higher institutional quality. The findings highlight the significance of quality education and robust institutions for carbon mitigation, offering critical insights for future sustainability research.