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In all countries, the priority of policymakers is to reduce carbon emissions without reducing economic growth performance. Progress in innovation is one of the main measures that can be used to reduce carbon emissions. It is important to demonstrate the impact of innovation at the sectoral level, in terms of more realistic data on policy measures. The aim of this study is to investigate the effects of innovation on carbon emissions on a sectorial basis for fourteen countries in the G20, for the period between 1991 and 2017. The selected countries are Argentina, Brazil, Canada, France, Germany, India, Indonesia, Japan, Korea, Mexico, South Africa, Turkey, the United Kingdom, and the United States for which data is available. The results show that the Environmental Kuznets Curve (EKC) hypothesis is invalid and, in the long-term, innovations did not have a statistically significant effect on the energy sector, transport sector, and other sectors. It was also found that while an increase in innovation in the industrial sector leads to a reduction in carbon emissions, an increase in innovation in the construction sector increases carbon emissions. Therefore, it can be recommended that, in addition to national policies to reduce CO 2 emissions, specific policies should be implemented for each sector separately. • Innovation on carbon emission on a sectorial basis for 14 countries in G20 for 1971–2017. • The Environmental Kuznets Curve (EKC) hypothesis is invalid. • Long-term innovations didn't have a significant effect on the energy sector, transport sector, and other sectors. • The increase in innovation in the industrial sector leads to a reduction in carbon emissions. • Increasing innovation in the construction sector increases carbon emissions. [ABSTRACT FROM AUTHOR]

Human capital investments have a vital role in economic growth. Therefore the effects of human capital on the environment should be analyzed for sustainable economic growth. This paper contributes to the debate on the nexus between human capital and environmental degradation. Based on 21 EU countries' panel data over the period 1994–2018, this study aims to analyze the relationship between human capital and environmental pollution in different financial development levels. We employed the panel smooth transition regression model (PSTR) to assess the nexus between the variables. According to the estimation results, human capital decreases carbon emissions in the low growth regime whereas increases in the high growth regime. Besides, human capital increases carbon emissions in both low regimes of financial development and human capital, and decreases in high regimes. The analysis indicated that as human capital improves, there will be more innovation to protect the environment, and thus there is less environmental degradation. • Impacts of human capital on environment as economy grows. • 21 EU countries over the period 1994–2018. • Panel Smooth Transition Regression Model. • Human capital increases carbon emissions in both low regimes of financial development. • Human capital decreases carbon emissions in high regimes. [ABSTRACT FROM AUTHOR]