Modelling the Macroeconomic Determinants of Carbon Dioxide Emissions in the G-7 Countries: The Roles of Technological Innovation and Institutional Quality Improvement

Abstract

The group of seven (G-7) countries are seven of the most advanced global nations. Yet, these nations have not been able to achieve environmentally sustainable economic growth (EG) in the past. Consequently, despite growing economically, the environmental quality in the G-7 countries has persistently deteriorated. Hence, the present study examined the environmental impacts associated with EG, technological innovation, institutional quality (IQ), renewable energy consumption (RENE) and population using the carbon dioxide emission figures to measure environmental quality in the G-7 economies for the period 1996–2018. The econometric analyses involved the application of different estimation techniques that control the cross-sectional dependency and slope heterogeneity issues in the data. Overall, the results indicated that greater EG and higher population size increase environmental pollution by boosting the carbon dioxide emission levels. In contrast, technological innovation, IQ improvement, and greater RENE were found to impede the carbon dioxide emission levels. In line with these key findings, several environmental development-related policies are recommended.

The dynamic effect of information and communication technology and renewable energy on CO2 emission: Fresh evidence from panel quantile regression

“…This positive impact of FD on CE implies that the financial sector of MINT countries is ignoring the adverse impact of environmental pollution at the time of lending or investment. This result is similar to the findings of Farooq et al (2021), Anwar et al (2022b) and Anwar et al (2021c). Similarly, a 1% increase in GDP raises CE by 0.269 and 0.262 in the case of FMOLS and FE-OLS, respectively.…”

“…The findings of panel quantile estimation are represented in Table 6, which shows that FD has a positive influence on CE across all the quantiles (1st-9th). The outcomes are similar to the findings of Anwar et al (2021c), Farooq et al (2021), Al-Mulali et al (2015), and Shahbaz et al (2020), who suggested that financial development may increase the production process and increase more use of conventional energy which led to decrease in environmental quality. Similarly, economic growth increases the carbon emission across all the quantiles (1st-9th).…”

Probing the Effect of Governance of Tourism Development, Economic Growth, and Foreign Direct Investment on Carbon Dioxide Emissions in Africa: The African Experience

“…Diverse forms of governance measurement have various influences on CO 2 emissions [22,23]. In most countries, institutional governance quality is the premise for determining the quality of the environment [24][25][26]. These dimensions of governance are multifaceted: political stability (POLS), the voice of accountability (VA), regulatory quality (REQ), the rule of law (RULE), control of corruption (CC), and governance effectiveness (GOVE) [27][28][29].…”

Exploring the Dynamic Relationship Between Energy Efficiency, Trade, Economic Growth, and CO2 Emissions: Evidence From Novel Fourier ARDL Approach

“…Liu et al (2022) highlighted that environmentfriendly innovations impede COE. Parallel to this, Anwar et al (2021a), Anwar et al (2021b) noted that renewables and financial development curb COE. Likewise, Anwar et al (2021c) conclude that investment through public-private collaboration mitigates COE.…”