The Path to Effective Resource Management: Exploring the Impact of Eco-Friendly Innovations, Clean Energy Transition, Economic Development and Trade in G-7 Countries

Abstract

As one of the international economic organizations, the G-7 countries are composed of the world's leading industrialized countries. In addition, the role of the G-7 countries in global warming is another issue that is constantly debated. Concerns have been raised about these very wealthy nations' capacity to manage their resources sustainably. Examining the factors that contribute to efficient resource management in these nations has grown in significance. The goal of this research is to look at how eco-friendly innovations, clean energy transition, economic development, and trade affect effective resource management in the G-7 nations. The material footprint is used as a gauge for efficient resource management. The Method of Moments Quantile Regression (MMQR) approach, which is a novel method, was used in this research to examine the G-7 nations' yearly data for the years 1990–2019. Eco-friendly technologies lower the material footprint in the G-7 nations, according to MMQR findings. Results are statistically significant for the majority of quantile levels (0.1–0.7). Clean energy transition also reduces the material footprint of the G-7 countries, with statistically significant results at all quantile levels. Economic development increases the material footprints of G-7 countries; findings are statistically significant at all quantile levels. The material footprint is consequently increased by trade, and the results are statistically significant at various quantile levels (0.5–0.9). Additionally, the research tests robustness using other panel estimators and achieves similar findings. Lastly, the paper offers policy suggestions for G-7 nations' efficient resource management.