Do green transport and mitigation technologies drive OECD countries to sustainable path?

The sustainable development initiative aims to combat climate change in which green innovations, renewables, and taxes play a significant role. This study argues that sectoral carbon footprints vary, and so does the impact of technical innovation (Transportation (MTT), production and processing (MTPP), and Energy generation (MTEG)) in mitigation efforts. Therefore, the study examines their influence along with taxes in OECD economies from 1990 to 2020. The preliminary assessment uses second-generation techniques, while the long-run relationship among variables is examined using Error-correction-based models because of cross-sectional interdependencies. The findings affirm the existence of long-term linkages between variables. Transport-related innovation (MTT) reduces demand-based (DBE) and GHG emissions by elasticities of 0.115 and 0.126, respectively. Similarly, MTEG and MTPP technologies reduce production-based emission (PBE) by 0.174% and 0.137%, respectively, and GHG by 0.301% and 0.140%. Energy consumption is the major polluter across all sectors, whereas carbon tax limits emissions.