The impact of cleaner energy sources, advanced technology firms, and economic expansion on ecological footprints is critical in sustainable development

Abstract

The environmental degradation accompanying economic growth, despite the potential mitigating effects of technological advancements and cleaner energy sources. This study examines the critical impact of cleaner energy sources, advanced technology firms, and economic expansion on ecological footprints within the context of sustainable development, focusing on the period between 2010 and 2022. By comparing the E7 (emerging seven) and G7 (Group of Seven) economies, the research aims to delineate how these factors collectively influence environmental sustainability in both developing and developed nations. Utilizing a robust panel estimation technique, the study systematically explores the relationship between the adoption of renewable energy technologies, the growth of high-tech industries, and macroeconomic expansion, alongside their respective effects on the ecological footprint, a key indicator of environmental impact. Our statistical analysis reveals significant differences between the E7 and G7 countries. For the G7, investments in cleaner energy and technology sectors have shown a more pronounced effect in reducing ecological footprints, attributed to higher efficiency standards and greater public awareness. In contrast, the E7 countries exhibit a delayed response, owing to varying stages of economic development and technological adoption, although promising trends are emerging. Notably, the G7 demonstrates a more pronounced inclination towards financial imperialism (0.043), while the E7 is significantly influenced by green energy sources (0.258). Policy implications drawn from the findings suggest that targeted investments in green technologies and renewable energy sources, coupled with robust policies supporting economic expansion in a sustainable manner, are crucial for both groups of countries. For the E7, accelerating technology transfer and adopting stricter environmental regulations are key, while the G7 should focus on innovation and the continuous improvement of energy efficiency standards. This dual approach is essential for mitigating the environmental impacts of economic growth and steering the global economy towards a more sustainable trajectory.