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Analysis reveals energy transition and technological innovation significantly reduce carbon emissions in G7 countries, suggesting stronger sustainability policies are needed.
Purpose This study examines the impact of energy transition (ET) and technological innovation (TI) on environmental quality in G7 economies. Design/methodology/approach Using a balanced panel of 175 observations from 1999–2023, the cross-sectional autoregressive distributed lag (CS-ARDL) model analyzes short- and long-term relationships while accounting for cross-sectional dependence and heterogeneity. Findings Results show that ET and TI significantly reduce carbon emissions, thereby enhancing environmental quality. Practical implications Policies should prioritize renewable energy, energy efficiency and green-oriented TI to achieve meaningful emission reductions. Originality/value By focusing on G7 economies and applying CS-ARDL, the study addresses a literature gap and highlights the importance of sustained investment in sustainable and innovative initiatives for environmental improvement.
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Ghnimi et al. (2026) studied this question.
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