Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach

• Published in: Energy (Oxford) 2023-10, Vol.281, p.128234, Article 128234
• Main Authors: Guan, Zepeng, Hossain, Mohammad Razib, Sheikh, Muhammad Ramzan, Khan, Zeeshan, Gu, Xiao
• Format: Article
• Language: English
• Subjects: Energy efficiency; Energy related GHG; Energy transition; Environmental technology; G-7 economies; Method of moments quantile regression
• ISSN: 0360-5442
• DOI: 10.1016/j.energy.2023.128234

Contrary to most existing studies in the literature, we adopt the energy-related GHG emission (EGHG), an aggregate measure of environmental pollution, to present how GDP, energy efficiency, environmental technology, and globalization affect the environmental changes in the G-7 region from 1990 to 2020. We leaned on the novel Method of Moments Quantile Regression (MMQR) approach to obtain the coefficients in heterogenous quantiles. The findings show that all identified parameters, except for GDP, meaningfully reduce energy-related GHG emissions in the G-7 forum, and the findings are homogenous in all quantiles. More specifically, a surge in economic activities boosts EGHG in G-7 territories. Since energy efficiency is negatively related to EGHG, we claim that the G-7 forum has been able to curb the rebound effect in energy consumption. Furthermore, environmental innovations are a boon for reducing EGHG in the forum, indicating that these nations are on the right track to attain carbon neutrality and green growth directories as prescribed by the last climate conference (COP27). Besides, globalization reduces EGHG through the technology-driven spillover effects, indicating that the G-7 forum has successfully harnessed globalization to exchange R&D, technology, and innovation skills, which have escalated this forum's capacity to fight against climate change. •The nexus between energy efficiency, environmental technology and globalization has been assessed.•Energy-related GHG emissions are used to capture environmental pollution in the G-7 region.•The Novel Method of Moments Quantile Regression (MMQR) approach is used.•Economic growth increases pollution in all quantiles.•Energy efficiency, globalization and environmental technology reduce emissions in all quantiles.