Unleashing the influence of natural resources, sustainable energy and human capital on consumption-based carbon emissions in G-7 Countries

Abstract

The nexus of natural resources and cleaner energy with carbon emissions or ecological footprint has been explored extensively; however, consumption-based carbon emissions (CBCE) are adjusted for natural resources, sustainable energy, and human capital have not been studied, though environmental deterioration primarily emanated from anthropogenic activities. Consequently, this research investigates the linkages between natural resources, sustainable energy, human capital, and CBCE in G-7 economies from 1976 to 2020 using a battery of advanced econometric statistical models. The empirical outcomes of this article, through the cross-sectional autoregressive distributive lag (CS-ARDL) model, estimate the short- and long-run findings, which explain that natural resources, cleaner energy and human capital preserve whereas urbanization exacerbates the environmental quality. More so, imports have a positive whilst exports bear a negative connection with CBCE in advanced countries. The results of the study are further validated by employing the Augmented Mean Group (AMG) and Common correlated Effects Mean Group (CCEMG) to obtain robust outcomes. In the end, policies that can improve sustainable development through key variables are discussed to provide inclusive recommendations for stakeholders to meet the carbon neutrality targets.