Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics

Abstract

This study used panel simultaneous equations models with a generalized method of moments (GMM) estimator to examine the three-way linkages between ecological footprint (EFP), renewable energy consumption (REC), and income in the Group of Seven (G7) countries over the period 1990–2018. The outcomes of this study demonstrate a two-way association between gross domestic product (GDP) and renewable energy. The findings confirm the presence of a bidirectional link between outcome and ecological footprint, as well as between EFP and renewable energy. The results of this study demonstrate that improving human capital positively and significantly effects income, environmental quality, and REC. Ecological footprint is not significantly impacted by economic and social globalization, whereas the impact of financial globalization is negative and significant. Trade openness is positively and significantly connected with REC and income, which could contribute to reducing environmental deterioration. In conclusion, we make policy recommendations that are based on the findings of the study.

Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26

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Does Rising Resources Income, Consumer Prices, Government Outlay, and Globalisation Hinder Africa's Sustainable Development?

“…The study employed the D-K methodology in submitting that while economic globalisation (de facto) reduces ecological sustainability, economic and political globalisation (de jure) enhances it in 23 African countries. Similarly, by employing the GMM estimator, Radmehr et al (2022) found an insignificant effect of economic and social globalisation but adverse and significant financial globalisation on ecological sustainability in G7 economies.…”

Towards environmental sustainability: nexus of ecological footprint, human capital, economic growth and energy consumption in India

“…Conversely, in the early phases of expansion, the main aim of policymakers in every country is to accomplish progress, even at the cost of the environment. Hence, those countries import inexpensive, environmentally harmful technology to increase output, thereby degrading environmental worth (Ruza and Caro-Carretero, 2022; Radmehr et al ., 2022; Mishra and Dash, 2022). It is well known that India and other developing nations are driven by a desire for economic growth, exacerbating environmental damage (Yildiz et al ., 2022).…”