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The role of biomass energy consumption and economic complexity on environmental sustainability in G7 economies

Author

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  • Umer Shahzad
  • Mohamed Elheddad
  • Julia Swart
  • Sudeshna Ghosh
  • Buhari Dogan

Abstract

This paper empirically examines the effect of biomass energy consumption and economic complexity on environmental sustainability in G7 economies. The current study attempts to report a comprehensive analysis of biomass energy and economic complexity on ecological and carbon footprints and carbon emissions. We employ data from 1990 to 2019 and adopt robust panel econometric techniques that account for the analysis's cross‐sectional dependence. We conduct cointegration analysis, pooled ordinary least squares (OLS), system generalized method of moments (GMM) and conditional quantile model for our empirical analysis. The empirical findings show that both biomass energy consumption and economic complexity are detrimental to the ecological footprint and carbon footprint. Additionally, we find that globalization positively affects the environment, while we find some evidence that bureaucratic quality improves environmental quality. Finally, in line with other research, we find that economic growth has detrimental effects on the environment. Our results suggest that policymakers should be more cautious in promoting biomass as a clean energy source and that the G7 economies should take advantage of their leading position in innovation to invest more in sustainable practices and investment.

Suggested Citation

  • Umer Shahzad & Mohamed Elheddad & Julia Swart & Sudeshna Ghosh & Buhari Dogan, 2023. "The role of biomass energy consumption and economic complexity on environmental sustainability in G7 economies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 781-801, January.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:1:p:781-801
    DOI: 10.1002/bse.3175
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    3. Yao Li & Yugang He, 2024. "Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability," Sustainability, MDPI, vol. 16(5), pages 1-29, March.

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