Industry Structure and Green Future: The Role of Medium and High‐Tech Industries on the Environment

ABSTRACT This paper examines the relationship between medium‐ and high‐tech industries and CO 2 emissions in BRICS economies, with particular attention to short‐ and long‐run effects from the perspectives of the Porter, Decoupling, and Green Technology Diffusion hypotheses. While environmental pollution in emerging markets is often addressed in the context of energy, finance, and research and development variables, this study treats structural transformation in industry as a key driver. Empirical results indicate that medium‐ and high‐technology sectors do not have a statistically significant impact on CO 2 emissions in the short term. However, their effects become statistically significant and environmentally beneficial in the long run, suggesting that technological upgrading reduces CO 2 emissions only after a time lag. The findings underscore the substantial, albeit delayed, impact of medium‐ and high‐tech industries. The results indicate that a combination of environmental regulation and industrial upgrading can strengthen competitiveness and improve environmental outcomes in BRICS economies. BRICS economies should pursue long‐term strategies when developing policies to address the environmental impacts of medium‐ and high‐technology sectors.