The role of human capital and innovation in reducing carbon emissions in OECD and BRICS countries

Climate change, driven largely by carbon dioxide emissions, has become a pressing global challenge that requires both economic and technological solutions. This study examines the role of intellectual human capital, characterized by productivity, adaptability, and creativity, in reducing emissions in Organization for Economic Cooperation and Development (OECD) and BRICS (Brazil, Russia, India, China, and South Africa) countries. Using data from 2012 to 2020 and applying the Generalized Method of Moments technique, the results show that intellectual capital significantly reduces carbon emissions in developed economies, whereas in emerging economies, increased intellectual activity does not correspond with lower emissions, suggesting differing priorities and institutional capacities. The analysis further indicates that population growth and higher income per person are associated with greater emissions, while the use of renewable energy lowers emissions in both groups of countries. These findings suggest that policies that expand intellectual capacity, foster innovation, and accelerate renewable energy adoption can help align economic growth with environmental sustainability. For emerging economies, targeted frameworks that integrate education, innovation, and green technology are particularly important to strengthen the role of intellectual capital in mitigating emissions.