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This paper aims to examine the causal effect of circular technological innovation on greenhouse gas emissions. In the study, panel data are collected from 30 advanced and emerging economies spanning more than two decades, and a recently innovated instrumental variable approach with a common factor error structure is used to analyze dynamic panel data. The results provide robust findings during sensitivity tests. We find that technological innovation in a circular economy causes a significant reduction in major greenhouse gas emissions, including carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Since the net effects of circular technological innovation translate into a reduction of emissions, this appears as a suitable tool in the fight against climate change. In addition, our study highlights the need to reinforce measures to promote circular technological innovation to influence environmental quality, compared to viewing it as an alternative approach to environmental sustainability. [ABSTRACT FROM AUTHOR]

A high‐quality green transition is essential to achieving sustainable and coordinated global development. In this paper, a new method of two‐step geometric average is proposed to measure green transition, and a comprehensive framework on the relationship between sustainability and coordination via the propelling force of green transition is constructed at both the national and provincial levels. In addition, the mediating effect model and the threshold model are employed to empirically verify the mechanisms and influences. According to the results, green transition can contribute to regional economic growth at national level and to the coordinated development of regional economies at provincial level in China. Meanwhile, the non‐linear 'U‐shaped' relationships between green transition and regional economy are demonstrated in Asia and the eastern region of China, and spillover effect of technological innovation can indirectly promote regional development. In addition, the heterogeneity effect of green transition fully releases the dividend of economic quality and environmental governance capacity, promoting the coordinated development of regional economies. In the meantime, the driving force of green transition on regional economy is dependent on the external environment, particularly before and after the outbreak of COVID‐19, when its impact has altered substantially. Therefore, it is necessary to promote green transition via greater technological innovation efficiency, and then to restore the vitality of regional economic development; which could provide policy makers and professionals in the regional economy with information for enhancing sustainable and coordinated development. [ABSTRACT FROM AUTHOR]