Technological innovation, energy efficiency, and carbon emissions of South Korean firms: The moderating effect of industry characteristics

This study examines the relationships among technological innovation, energy efficiency, and reductions in carbon emissions, while accounting for the moderating effects of energy- and carbon-intensive sectors. Using longitudinal panel data from South Korea spanning 2011 to 2023, this study provides evidence that general patents and green patents, as a proxy for technological innovation, significantly increase energy efficiency and reduce carbon emissions. The results of this study also confirm that energy efficiency partially mediates the association between technological innovation and emissions reductions. Notably, these positive effects are stronger in energy- and carbon-intensive sectors. This study is novel in that it explores the interplay among patents, energy efficiency, and carbon emissions by simultaneously considering mediation and moderation mechanisms. Our findings provide managerial and policy implications for enhancing corporate competitiveness when transitioning to a low-carbon economy.