RESEARCH ARTICLE
Patent Strength, Innovation, and CO2 Emissions: Evidence of Non-Linear Environmental Impacts Across Economies
Constantinos Alexiou,
Marjan Petreski,
Constantinos Alexiou
Cranfield School of Management, Cranfield University, Cranfield, UK
Search for more papers by this authorCorresponding Author
Marjan Petreski
University American College Skopje, Skopje, North Macedonia
Finance Think – Economic Research & Policy Institute, Skopje, North Macedonia
Gdansk University of Technology, Gdansk, Poland
PEP – Partnership for Economic Policies, Quebec, Canada
Correspondence:
Marjan Petreski ([email protected])
Search for more papers by this authorConstantinos Alexiou,
Marjan Petreski,
Constantinos Alexiou
Cranfield School of Management, Cranfield University, Cranfield, UK
Search for more papers by this authorCorresponding Author
Marjan Petreski
University American College Skopje, Skopje, North Macedonia
Finance Think – Economic Research & Policy Institute, Skopje, North Macedonia
Gdansk University of Technology, Gdansk, Poland
PEP – Partnership for Economic Policies, Quebec, Canada
Correspondence:
Marjan Petreski ([email protected])
Search for more papers by this authorFirst published: 22 July 2025
Funding: The authors received no specific funding for this work.
ABSTRACT
This study investigates the complex relationship among patent strength, innovation, and CO2 emissions by exploring a pathway through which the strength of patents influences environmental sustainability. Utilizing structural equation modeling (SEM), we examine data from a diverse set of OECD and non-OECD countries over the period 1998–2017. Our results reveal a non-linear, S-shaped relationship between patent stringency and CO2 emissions, highlighting that while stronger patent protections can initially lead to increased emissions due to industrial activity, they may also encourage efficiency improvements and cleaner practices after reaching a certain threshold. However, excessively stringent patents may revive emissions by reducing competition and innovation. The findings emphasize the need for nuanced patent policies that consider both economic growth and environmental sustainability.
Conflicts of Interest
The authors declare no conflicts of interest.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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