Does Knowledge Empower Climate Action? The Moderating Role of Governance in the Education–Carbon Neutrality Nexus

ABSTRACT This study explores how governance quality moderates the impact of education on carbon emissions in 119 developing countries from 2003 to 2021. Using a two‐step System GMM approach, it examines the roles of primary, secondary, and tertiary education alongside six governance indicators. Results show that strong governance—especially regulatory quality and rule of law—amplifies the emissions‐reducing effects of primary and tertiary education. Secondary education yields mixed outcomes. While political stability promotes economic growth, it does not consistently support sustainability goals. Public accountability and regulatory effectiveness are more influential in aligning education with environmental outcomes. The study recommends enhancing governance structures and fostering civic engagement in environmental policymaking to leverage education's role in reducing emissions and promoting sustainable development.