Eco-innovation at the Frontiers of Brazil's Economic Growth

Abstract

Objective – To present eco-innovation at the frontiers of Brazil's economic growth, measured by its impact on Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), and its reflections on pollution (CO2 equivalent) and the removal of these pollutants.

Methodology – The study adopts a qualitative approach, utilizing documentary data and incorporating descriptive and explanatory analysis.

Originality/Relevance – The study highlights eco-innovation through GFCF and identifies essential gaps in addressing the costs of economic growth via GDP in relation to environmental pollution. While these costs are often considered low compared to immediate economic benefits, they become significantly higher when public health impacts are accounted for, a crucial aspect for academic research.

Results – The findings reveal a complex relationship between GDP growth, investments in machinery and equipment (GFCF), pollution, and CO2 removal during the period from 2008 to 2022.

Theoretical/Methodological Contributions – Eco-innovation remains largely at the margins of economic growth frontiers due to the insignificant growth of GFCF relative to GDP. This is attributed to the reduction in fixed capital investments, the lack of Clean Development Mechanism (CDM) certification by companies, and the insufficient commitment of political authorities to addressing the problem of global warming.

Social and Environmental Contributions – Strategies for formulating integrated policies capable of balancing economic, social, and environmental objectives are essential to promoting long-term sustainable development. These policies not only ensure society's well-being by mitigating negative environmental impacts but also foster social inclusion, economic equity, and the preservation of natural resources for future generations.