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The new sustainable development goals (SDGs) call for actions to close the gap between the protection of the environment and the socio-economic development. To shed light on the link among economy, society, and ecology, this study assesses the ability of renewable energy to moderate the effects of CO 2 emissions on human development and economic growth for 31 transitional economies. Our findings substantiate that: (i) CO 2 emissions have unconditional negative effects on human development and economic growth; (ii) the net impacts on human development and economic growth are positive from the interplay between renewable energy and CO 2 emissions, i.e. renewable energy reduces the influences of per capita CO 2 emissions on human development and economic growth; (iii) renewable energy interacts with CO 2 intensity and CO 2 emissions from liquid fuel consumption to negatively influence economic growth and human development. To dampen these net negative effects, corresponding renewable energy thresholds were computed and discussed. Theoretical and empirical contributions, implications to policymakers, and practitioners are also discussed., (Copyright © 2020 Elsevier Ltd. All rights reserved.)

• We examine the effects of Environmental Innovations on CO 2 Emissions for 15 UE countries. • We use an ARDL model based on data covering the period 1991–2014. • Our results highlight that in the long-term environmental innovations tend to lower CO 2 emissions. • In the short-term the observed effect is the opposite, suggesting the existence of a rebound effect. • Several orientations in terms of public policies can be drawn up in the light of these results. Environmental innovations are key enablers of transition towards greener economies. Despite their importance, empirical studies examining the effect of green technologies on CO 2 emissions are still limited. Using an autoregressive distributed-lag model (ARDL), we analyze the impact of environmental innovations, the consumption of renewable energies, GDP per capita, and degree of economic openness on CO 2 emissions for 15 European countries over 23 years. Our results indicate that, in the long-term, environmental innovations tend to lower CO 2 emissions, whereas in the short-term the observed effect is the opposite, suggesting the existence of a rebound effect. This study recommends introducing new policies that combine tools of environmental economics with those of ecological economy to integrate economic incentives with regulatory changes and encourage individuals to consume differently by favouring products and/or services with a less negative impact on the environment. [ABSTRACT FROM AUTHOR]