Greening the E7 environment: how can renewable and nuclear energy moderate financial development, natural resources, and digitalization towards the target?

Abstract

ABSTRACT This study examines the extent to which green energy vectoring renewable energy and nuclear energy moderates the effects of natural resource dependence and digitalization on environmental sustainability (measured by carbon emissions per capita and ecological footprint) in selected emerging seven (E7) countries. The study considers the intervening roles of financial development, economic growth, and population growth from 1996 to 2019. The verification of the empirical hypotheses anchors on advanced estimating techniques comprising cross-sectional dependence autoregressive distributed lag and augmented mean group. Results reveal that natural resource dependence and financial development hinder the attainment of environmental sustainability by inducing significant rise in carbon emissions per capita and ecological footprint. Conversely, digitalization promotes the strides toward environmental sustainability by significantly mitigating the surge in both pollutants. The direct and indirect effects of green energy are observed to sufficiently promote environmental sustainability. Moreover, while economic growth in the selected economies displays a significant level of support for sustainability targets, population growth portrays otherwise. Besides, the country-level analyses anchored on Fully Modified OLS show that natural resource dependence significantly hinders sustainability targets in Russia alone. More so, the existence of EKC finds support in Brazil and Mexico. Policy insights emanate from the findings.