Unraveling the interaction effect between the educated labor force and patent applications on environmental quality in OECD countries: investigation of N-shaped EKC hypothesis

This study explores the role of green knowledge, derived from environmental education, in equipping the workforce with sustainable practices, eco-friendly technologies, and tools essential for achieving the Sustainable Development Goals. It investigates the interaction between an educated labor force and patent applications and its effects on environmental quality across OECD countries from 2000 to 2022. Employing the Method of Moments Quantile Regression, both with and without the interaction term, the study validates the N-shaped Environmental Kuznets Curve. The findings indicate that while the educated labor force reduces CO2 emissions, introducing the interaction term shows that educated labor force initially increases emissions, but combined effect ultimately reduces emissions as skilled labor force adopts green innovation. Additionally, patents consistently raises pollution, while its interaction with educated labor force highlight the effectiveness of their synergy in pollution reduction. Renewable energy consumption is also shown to decrease emissions. Robustness checks corroborate these results. The study advocates for incorporating environmental education at all levels and investing in continuous professional development to enhance sustainable skills.