Mustafa Tevfik KartalM. Warrier SantoshDilvin TaşkınSerpil Kılıç DeprenFatih Ayhan2025-10-062025978012375025918790682, 096014810960-148110.1016/j.renene.2025.123338https://www.scopus.com/inward/record.uri?eid=2-s2.0-105004644476&doi=10.1016%2Fj.renene.2025.123338&partnerID=40&md5=80963ce2404dacad07dee27425470d19https://gcris.yasar.edu.tr/handle/123456789/7968Environmental degradation (ED) has emerged as a significant challenge against the increasing demands of modern civilization. Therefore transforming the economic structure into an eco-friendly structure is highly critical. So this study focuses on the impacts of productive capacity shifts in key areas on ED in leading six developed economies by considering carbon dioxide (CO<inf>2</inf>) emissions as a dependent variable, using the productive capacity index (PCI) for human capital (PCI-HCA) transport (PCI-TRA) institutions (PCI-INS) energy-related public R&D investments economic growth nuclear energy and renewable energy as independent variables, and applies a kernel-based regularized least squares (KRLS) method on data from 2000 to 2022. The results show that (i) PCI-HCA curbs CO<inf>2</inf> emissions in all countries except the United Kingdom, (ii) PCI-TRA and PCI-INS are ineffective in declining CO<inf>2</inf> emissions in all countries), (iii) R&D investments are helpful in all countries except Canada and Japan, (iv) economic growth structure is not eco-friendly in all countries, (v) nuclear (renewable) energy use is beneficial in Japan (all countries except Canada & France, (vi) KRLS method provides high estimation results ∼99.2 %. Accordingly the study discusses policy implications to prevent the ED by benefitting from productive capacity shifts clean energy and R&D investments in transforming economic structure. © 2025 Elsevier B.V. All rights reserved.EnglishClean Energy, Developed Countries, Energy-related Public R&d Investments, Environmental Degradation, Productive Capacity Shifts, Clean Energy, Co 2 Emission, Developed Countries, Eco-friendly, Economic Growths, Economic Structure, Energy, Energy-related Public R&d Investment, Productive Capacity, Productive Capacity Shift, Alternative Energy, Developing World, Economic Growth, Economic Structure, Energy Use, Environmental Degradation, Human Capital, Income, Canada, France, Japan, United KingdomClean energy, CO 2 emission, Developed countries, Eco-friendly, Economic growths, Economic structure, Energy, Energy-related public R&D investment, Productive capacity, Productive capacity shift, alternative energy, developing world, economic growth, economic structure, energy use, environmental degradation, human capital, income, Canada, France, Japan, United KingdomArticle