["International Journal of Finance &Economics, Volume 31, Issue 2, Page 1917-1932, April 2026. ", "\nABSTRACT\nThe current study examines the effect of economic freedom on overall CO2 emissions, territorial CO2 emissions, consumption CO2 emissions, and how the control of corruption moderates this relation. The study is based on a combined sample of BRICS and Next‐11 economies as well as on disaggregated analysis for the two blocks covering the period of 26 years (1995–2020). Employing a range of econometric techniques, including Driscoll and Kraay with fixed effects method, panel quantile regression, and panel threshold regressions, the study found a positive impact of economic freedom on overall CO2 emissions and a negative impact on Territorial and Consumption‐based CO2 emissions and this relationship remaining unchanged although coefficients reduced with the moderation of corruption control. The heterogeneous impact of economic freedom in low and high‐carbon emitting countries is being revealed, and a threshold effect of economic freedom, which depends on the income levels (GDP per capita), is also discovered. Towards the end, the study offers key stakeholders some policy recommendations and suggestions.\n"]