How G-7 countries are paving the way for net-zero emissions through energy efficient ecosystem?

Abstract

Given the relevance of the most burning issues across the globe, it is time to take action regarding the recovery of environmental issues such as global warming and climate change. Concerning inconsistencies and gaps in the prevailing literature, this study aims to investigate the role energy efficiency played in the energy related greenhouse gas emissions. With the advancement in the technological innovation, the importance of digitalization and environmental related technological innovation. Based on the economic importance of the Group of Seven (G7) economies, this study examined the connection of these variables in the mentioned group economies throughout 1990–2020. Employing advanced panel econometric approaches, the study found that prevalence of slope heterogeneity, cross-section dependence, and the existence of long-run equilibrium relationship. Due to non-linear data properties, the study uses non-parametric (method of moment quantile regression) technique. The results suggest the progressive role of energy efficiency, digitalization, and environmental related innovations on the environmental sustainability. These are substantial factors of sustainability as they significantly reduce the energy-related greenhouse gas emissions. On the contrary, economic growth is a significant driver of energy related greenhouse gas emissions. The results are robust and their causal linkage is also explored. This study suggests the increased investment and encouragement of energy efficiency, digitalization, and environmental related technological innovation in the G7 economies to pave the way for net zero emissions.