The synergy of renewable energy consumption, green technology, and environmental quality: Designing sustainable development goals policies

Green technology (GT) and the utilization of renewable energy (RE) are widely acknowledged as a catalyst for energy efficiency, economic growth, and a tool for combating environmental degradation. Although various studies have examined the ecological repercussions of these two improvements, they have primarily used traditional pollution indicators (namely, carbon emissions and ecological footprint) and ignored nations with the highest cleaner energy adoption. To bridge this gap, the present research seeks to analyze the relationship between GT, RE consumption, economic growth, trade, and load capacity factor in the top‐10 renewable economies. In addition to environmental pollution indicators, the study utilizes the load capacity factor as a novel proxy for environmental quality and investigates the load capacity curve hypothesis using the Cross‐sectional‐autoregressive distributed lag model from 1990 to 2021. According to the empirical findings, all explanatory variables have a significant long‐term effect on the load capacity. More precisely, GT and RE consumption contribute to the sustainability of the ecosystem, while trade increases the ecological deficit. Furthermore, the findings do not support the validity of the load capacity curve hypothesis, implying that the environmental restorative benefits of economic well‐being may not manifest in the latter stages of economic growth. Given these findings, policymakers in the top‐10 renewable economies should seize the environmental prospects offered by GT and RE and update trade and growth policies in a way that promotes biocapacity while simultaneously reducing the ecological footprint to reach the long‐term sustainable development goals (SDGs), particularly SDGs 7 and 13.