IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v79y2022ics0301420722005165.html
   My bibliography  Save this article

Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries

Author

Listed:
  • Zhao, Xinlu
  • Adebayo, Tomiwa Sunday
  • Kong, Xianli
  • Al-Faryan, Mamdouh Abdulaziz Saleh

Abstract

The G7 nations have yet to have a detectable influence on the accomplishment of Sustainable Development Goals (SDGs) 8, 7, and 13. This scenario might be attributed to the fundamental problem with fossil fuel utilization in these nations as well as the difficulties in putting renewable energy generalization into practice. The G7 nations are battling to lessen their ecological footprint in the aftermath of these two possibilities. This study covers between 1990 and 2018 and adopts cross-sectional augmented autoregressive distributed lags (CS-ARDL) as the main model, whereas augmented mean group (AMG) and correlated effects mean group (CCEMG) techniques are used for robustness check. This study focuses on a policy readjustment that may be necessary to address this problem. More particularly, it examines how energy innovation, globalization, and nonrenewable energy affect ecological footprint. The empirical outcomes reveal that energy innovation and globalization negatively affect ecological footprint, whereas NREC and GDP positively influence EF. Based on the empirical findings of the paper, an SDGs-focused policy agenda is proposed. SDGs 7, 8, and 13 are addressed by this policy framework, but they can be also applied to other countries. This study contributes to the attention to the G7 nations’ environmental policy concerns and a concomitant suggestion of this SDGs-focused policy framework.

Suggested Citation

  • Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722005165
    DOI: 10.1016/j.resourpol.2022.103073
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420722005165
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2022.103073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    2. Joakim Westerlund, 2008. "Panel cointegration tests of the Fisher effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 193-233.
    3. Jayadevappa, Ravishankar & Chhatre, Sumedha, 2000. "International trade and environmental quality: a survey," Ecological Economics, Elsevier, vol. 32(2), pages 175-194, February.
    4. Savina Gygli & Florian Haelg & Niklas Potrafke & Jan-Egbert Sturm, 2019. "The KOF Globalisation Index – revisited," The Review of International Organizations, Springer, vol. 14(3), pages 543-574, September.
    5. Gazi A. Uddin & Khorshed Alam & Jeff Gow, 2016. "Does Ecological Footprint Impede Economic Growth? An Empirical Analysis Based on the Environmental Kuznets Curve Hypothesis," Australian Economic Papers, Wiley Blackwell, vol. 55(3), pages 301-316, September.
    6. Destek, Mehmet & Sinha, Avik, 2020. "Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries," MPRA Paper 104246, University Library of Munich, Germany, revised 2020.
    7. Kapetanios, G. & Pesaran, M. Hashem & Yamagata, T., 2011. "Panels with non-stationary multifactor error structures," Journal of Econometrics, Elsevier, vol. 160(2), pages 326-348, February.
    8. Xu, Li & Wang, Xiuli & Wang, Lijun & Zhang, Di, 2022. "Does technological advancement impede ecological footprint level? The role of natural resources prices volatility, foreign direct investment and renewable energy in China," Resources Policy, Elsevier, vol. 76(C).
    9. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    10. Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "Impact of renewable energy consumption, globalization, and technological innovation on environmental degradation in Japan: application of wavelet tools," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16057-16082, November.
    11. Fareed, Zeeshan & Rehman, Mubeen Abdur & Adebayo, Tomiwa Sunday & Wang, Yihan & Ahmad, Munir & Shahzad, Farrukh, 2022. "Financial inclusion and the environmental deterioration in Eurozone: The moderating role of innovation activity," Technology in Society, Elsevier, vol. 69(C).
    12. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    13. Yusheng Kong & Easmond Baah Nketia & Stephen Kwadwo Antwi & Mohammed Musah, 2020. "Scrutinizing the complex relationship between Financial Development Gross Fixed Capital Formation and Economic Growth in Africa by adopting CCEMG and AMG estimation techniques," International Journal of Science and Business, IJSAB International, vol. 4(11), pages 160-174.
    14. Francis Teal & Markus Eberhardt, 2010. "Productivity Analysis in Global Manufacturing Production," Economics Series Working Papers 515, University of Oxford, Department of Economics.
    15. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    16. Dogan, Eyup & Madaleno, Mara & Inglesi-Lotz, Roula & Taskin, Dilvin, 2022. "Race and energy poverty: Evidence from African-American households," Energy Economics, Elsevier, vol. 108(C).
    17. Eberhardt, Markus & Teal, Francis, 2008. "Modeling technology and technological change in manufacturing: how do countries differ?," MPRA Paper 10690, University Library of Munich, Germany.
    18. Jinhua Shao & Brayan Tillaguango & Rafael Alvarado & Santiago Ochoa-Moreno & Johanna Alvarado-Espejo, 2021. "Environmental Impact of the Shadow Economy, Globalisation, Trade and Market Size: Evidence Using Linear and Non-Linear Methods," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    19. Dogan, Eyup & Chishti, Muhammad Zubair & Karimi Alavijeh, Nooshin & Tzeremes, Panayiotis, 2022. "The roles of technology and Kyoto Protocol in energy transition towards COP26 targets: Evidence from the novel GMM-PVAR approach for G-7 countries," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    20. Liang, Jinhao & Irfan, Muhammad & Ikram, Muhammad & Zimon, Dominik, 2022. "Evaluating natural resources volatility in an emerging economy: The influence of solar energy development barriers," Resources Policy, Elsevier, vol. 78(C).
    21. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    22. Razzaq, Asif & Wang, Yufeng & Chupradit, Supat & Suksatan, Wanich & Shahzad, Farrukh, 2021. "Asymmetric inter-linkages between green technology innovation and consumption-based carbon emissions in BRICS countries using quantile-on-quantile framework," Technology in Society, Elsevier, vol. 66(C).
    23. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    24. Dogan, Eyup & Madaleno, Mara & Taskin, Dilvin & Tzeremes, Panayiotis, 2022. "Investigating the spillovers and connectedness between green finance and renewable energy sources," Renewable Energy, Elsevier, vol. 197(C), pages 709-722.
    25. Dervis Kirikkaleli & Tomiwa Sunday Adebayo, 2021. "Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 583-594, July.
    26. Veli Yilanci & Muhammed Sehid Gorus & Sakiru Adebola Solarin, 2022. "Convergence in per capita carbon footprint and ecological footprint for G7 countries: Evidence from panel Fourier threshold unit root test," Energy & Environment, , vol. 33(3), pages 527-545, May.
    27. Tang, Chang & Irfan, Muhammad & Razzaq, Asif & Dagar, Vishal, 2022. "Natural resources and financial development: Role of business regulations in testing the resource-curse hypothesis in ASEAN countries," Resources Policy, Elsevier, vol. 76(C).
    28. Adebayo, Tomiwa Sunday & Onifade, Stephen Taiwo & Alola, Andrew Adewale & Muoneke, Obumneke Bob, 2022. "Does it take international integration of natural resources to ascend the ladder of environmental quality in the newly industrialized countries?," Resources Policy, Elsevier, vol. 76(C).
    29. Anwar, Ahsan & Siddique, Muhammad & Eyup Dogan, & Sharif, Arshian, 2021. "The moderating role of renewable and non-renewable energy in environment-income nexus for ASEAN countries: Evidence from Method of Moments Quantile Regression," Renewable Energy, Elsevier, vol. 164(C), pages 956-967.
    30. Zhao, Jing & Sinha, Avik & Inuwa, Nasiru & Wang, Yihan & Murshed, Muntasir & Abbasi, Kashif Raza, 2022. "Does structural transformation in economy impact inequality in renewable energy productivity? Implications for sustainable development," Renewable Energy, Elsevier, vol. 189(C), pages 853-864.
    31. Melek Yurdakul & Halim Kazan, 2020. "Effects of Eco-Innovation on Economic and Environmental Performance: Evidence from Turkey’s Manufacturing Companies," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    32. Zakari, Abdulrasheed & Li, Guo & Khan, Irfan & Jindal, Abhinav & Tawiah, Vincent & Alvarado, Rafael, 2022. "Are abundant energy resources and Chinese business a solution to environmental prosperity in Africa?," Energy Policy, Elsevier, vol. 163(C).
    33. Menz, Tobias & Welsch, Heinz, 2010. "Population aging and environmental preferences in OECD countries: The case of air pollution," Ecological Economics, Elsevier, vol. 69(12), pages 2582-2589, October.
    34. Zhao, Jun & Shahbaz, Muhammad & Dong, Xiucheng & Dong, Kangyin, 2021. "How does financial risk affect global CO2 emissions? The role of technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    35. Farzin, Y. Hossein & Bond, Craig A., 2006. "Democracy and environmental quality," Journal of Development Economics, Elsevier, vol. 81(1), pages 213-235, October.
    36. Ulucak, Recep & Danish, & Ozcan, Burcu, 2020. "Relationship between energy consumption and environmental sustainability in OECD countries: The role of natural resources rents," Resources Policy, Elsevier, vol. 69(C).
    37. Abbasi, Kashif Raza & Shahbaz, Muhammad & Zhang, Jinjun & Irfan, Muhammad & Alvarado, Rafael, 2022. "Analyze the environmental sustainability factors of China: The role of fossil fuel energy and renewable energy," Renewable Energy, Elsevier, vol. 187(C), pages 390-402.
    38. George Babington Amegavi & Zechariah Langnel & Albert Ahenkan & Thomas Buabeng, 2022. "The dynamic relationship between economic globalisation, institutional quality, and ecological footprint: Evidence from Ghana," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(6), pages 876-893, August.
    39. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    40. Acheampong, Alex O. & Dzator, Janet & Dzator, Michael & Salim, Ruhul, 2022. "Unveiling the effect of transport infrastructure and technological innovation on economic growth, energy consumption and CO2 emissions," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    41. Kılıç Depren, Serpil & Kartal, Mustafa Tevfik & Ertuğrul, Hasan Murat & Depren, Özer, 2022. "The role of data frequency and method selection in electricity price estimation: Comparative evidence from Turkey in pre-pandemic and pandemic periods," Renewable Energy, Elsevier, vol. 186(C), pages 217-225.
    42. Dogan, Eyup & Majeed, Muhammad Tariq & Luni, Tania, 2022. "Revisiting the nexus of ecological footprint, unemployment, and renewable and non-renewable energy for South Asian economies: Evidence from novel research methods," Renewable Energy, Elsevier, vol. 194(C), pages 1060-1070.
    43. Eberhardt, Markus & Bond, Stephen, 2009. "Cross-section dependence in nonstationary panel models: a novel estimator," MPRA Paper 17692, University Library of Munich, Germany.
    44. Athanasios Kampas & Katarzyna Czech & Stelios Rozakis, 2021. "Do Globalisation and Environmental Policy Stringency affect the Environmental Terms of Trade? Evidence from the V4 countries," Working Papers 2021-1, Agricultural University of Athens, Department Of Agricultural Economics.
    45. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.
    46. Abbasi, Kashif Raza & Shahbaz, Muhammad & Jiao, Zhilun & Tufail, Muhammad, 2021. "How energy consumption, industrial growth, urbanization, and CO2 emissions affect economic growth in Pakistan? A novel dynamic ARDL simulations approach," Energy, Elsevier, vol. 221(C).
    47. Zhai, Xueqi & An, Yunfei, 2021. "The relationship between technological innovation and green transformation efficiency in China: An empirical analysis using spatial panel data," Technology in Society, Elsevier, vol. 64(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chishti, Muhammad Zubair & Patel, Ritesh, 2023. "Breaking the climate deadlock: Leveraging the effects of natural resources on climate technologies to achieve COP26 targets," Resources Policy, Elsevier, vol. 82(C).
    2. Kuşkaya, Sevda & Bilgili, Faik & Muğaloğlu, Erhan & Khan, Kamran & Hoque, Mohammad Enamul & Toguç, Nurhan, 2023. "The role of solar energy usage in environmental sustainability: Fresh evidence through time-frequency analyses," Renewable Energy, Elsevier, vol. 206(C), pages 858-871.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alvarado, Rafael & Tillaguango, Brayan & Murshed, Muntasir & Ochoa-Moreno, Santiago & Rehman, Abdul & Işık, Cem & Alvarado-Espejo, Johana, 2022. "Impact of the informal economy on the ecological footprint: The role of urban concentration and globalization," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 750-767.
    2. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    3. Chen, Jie & Huang, Shoujun & Kamran, Hafiz Waqas, 2023. "Empowering sustainability practices through energy transition for sustainable development goal 7: The role of energy patents and natural resources among European Union economies through advanced panel," Energy Policy, Elsevier, vol. 176(C).
    4. Irfan, Muhammad & Abdur Rehman, Mubeen & Liu, Xuemei & Razzaq, Asif, 2022. "Interlinkages between mineral resources, financial markets, and sustainable energy sources: Evidence from minerals exporting countries," Resources Policy, Elsevier, vol. 79(C).
    5. Bright Akwasi Gyamfi & Asiedu B. Ampomah & Festus V. Bekun & Simplice A. Asongu, 2022. "Can information and communication technology and institutional quality help mitigate climate change in E7 economies? An environmental Kuznets curve extension," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-20, December.
    6. abid, Nabila & Ceci, Federica & Razzaq, Asif, 2023. "Inclusivity of information and communication technology in ecological governance for sustainable resources management in G10 countries," Resources Policy, Elsevier, vol. 81(C).
    7. Wang, Wei & Rehman, Mubeen Abdur & Fahad, Shah, 2022. "The dynamic influence of renewable energy, trade openness, and industrialization on the sustainable environment in G-7 economies," Renewable Energy, Elsevier, vol. 198(C), pages 484-491.
    8. Sencer Atasoy, Burak, 2017. "Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 731-747.
    9. Zhongwei, Huang & Liu, Yishu, 2022. "The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach," Renewable Energy, Elsevier, vol. 201(P1), pages 131-140.
    10. Zhang, Wenting & Wang, Zibang & Adebayo, Tomiwa Sunday & Altuntaş, Mehmet, 2022. "Asymmetric linkages between renewable energy consumption, financial integration, and ecological sustainability: Moderating role of technology innovation and urbanization," Renewable Energy, Elsevier, vol. 197(C), pages 1233-1243.
    11. Chandan Sharma & Debdatta Pal, 2021. "Revisiting resource curse puzzle: new evidence from heterogeneous panel analysis," Applied Economics, Taylor & Francis Journals, vol. 53(8), pages 897-912, February.
    12. Fotis, Panagiotis & Polemis, Michael, 2018. "The impact of market deregulation on milk price: A dynamic panel data approach," MPRA Paper 86542, University Library of Munich, Germany.
    13. Cem Ertur & Antonio Musolesi, 2017. "Weak and Strong Cross‐Sectional Dependence: A Panel Data Analysis of International Technology Diffusion," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(3), pages 477-503, April.
    14. Ursel Baumann, 2014. "Has US Household Deleveraging Ended? A Model-Based Estimate of Equilibrium Debt," Working Papers w201404, Banco de Portugal, Economics and Research Department.
    15. Alberto Montagnoli & Jun Nagaysu, 2013. "An investigation of housing affordability in the UK regions," Working Papers 1316, University of Strathclyde Business School, Department of Economics.
    16. Lanzafame, Matteo & Nogueira, Reginaldo, 2013. "Inflation targeting and interest rates," MPRA Paper 46153, University Library of Munich, Germany.
    17. Mouna Ben Abdeljelil & Christophe Rault & Fateh Belaïd, 2023. "Economic growth and pollutant emissions: new panel evidence from the union for the Mediterranean countries," Economic Change and Restructuring, Springer, vol. 56(3), pages 1537-1566, June.
    18. Markus Eberhardt, 2012. "Estimating panel time-series models with heterogeneous slopes," Stata Journal, StataCorp LP, vol. 12(1), pages 61-71, March.
    19. Hassan, Taimoor & Song, Huaming & Khan, Yasir & Kirikkaleli, Dervis, 2022. "Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies," Energy, Elsevier, vol. 243(C).
    20. Alper Aslan & Ebru Topcu, 2018. "The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors," Economies, MDPI, vol. 6(2), pages 1-15, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722005165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.