Ecological-linked technology, institutional quality and environmental sustainability : Evidence from E7 economies

Abstract

The COP-27 meeting held in Egypt in November 2022 aimed to build on past successes and set the foundation for future objectives in the fight against global warming. Achieving ecological responsibility remains a significant challenge, particularly in light of the Post-Glasgow Agreement goals, necessitating increased pressure on participating nations to act. Despite its importance, previous literature has inadequately explored the factors that effectively reduce carbon emissions in E7 economies. This study addresses this research gap by forecasting the impact of green environmental technology, technological innovation, renewable energy adoption, structural changes (measured by the contribution of services to GDP), and institutional quality (IQ) on carbon emissions in E7 economies. Using the advanced Method-of-Moments Quantile procedure on data from 2000 to 2020, the study finds that environmental technology significantly reduces carbon emissions, while technological innovation increases emissions within the bloc. Additionally, IQ, structural changes, and renewable energy adoption exhibit a significant inverse relationship with pollution levels. These findings underscore the importance of policies that restore and promote environmental technology while simultaneously fostering technical advancements. Such strategies are essential for achieving the United Nations’ Sustainable Development Goals (UN-SDGs) 7 (Affordable and Clean Energy) and 13 (Climate Action).