Going green for good: How sustainable economic development and green energy resources are driving carbon neutrality in G-7 countries?

Abstract

The construction of a sustainable society in the present era is significantly based on green economic development, environmental sustainability, and ecological energy resources. It is now more difficult than ever for economists, environmentalists, and policymakers to achieve sustainable environmental development and economic growth while preventing environmental damage enhance the burden on the economy. It is worth mentioning that this research approach is leading CO2 emission resources in G-7 countries as dependent variables and possibly CO2-reducing determinants as independent variables from 1993 to 2020. The research data are extracted from the world development indicators, and these are secondary nature data. The stationarity of the data series is checked by employing a panel unit root and proceeds to the cointegration test. The cointegration, fully modified ordinary least squares (FMOLS), quantile regression, and wavelet coherence tests have confirmed the long-run relationship among variables. Renewable energy and economic growth are aidant factors in reducing CO2 emissions from all resources. Low carbon energy is reduced CO2 from coal and gas while increasing the CO2 emission from oil. Renewable energy, low carbon energy, and rapid growth of gross domestic product (GDP) are environmentally friendly factors which can eliminate gas energy emissions. This research presents practical policy implications that address globalization trends, carbon emissions, and the overall energy structure and economic growth of G-7 countries.