Abstract:
Both developed and developing countries across the world are experiencing climate change-related adversities mainly due to failing to limit the emissions of greenhouse gases into the atmosphere. More often than not, the surge in greenhouse gas emissions is instigated through a rise in fossil fuel consumption levels. Hence, in respect of mitigating these emissions, especially carbon dioxide, it is pivotal to raise the share of green energy in the total energy supply. Accordingly, public sector investment in the renewable energy sector is hypothesized to play a vital role in specifically enhancing the technological level required for substantially increasing green energy production and supply. Moreover, the concurrent role of technological innovation, as a whole, in boosting green energy supply and ensuring environmental sustainability cannot be overlooked. Against this backdrop, this study investigates the effect of public investments in research and development related to renewable energy and technological innovation on renewable energy supply shares and carbon dioxide emissions in the G7 countries, controlling for the level of trade globalization in these countries. The results unfolded higher public investments in renewable energy development-related projects, technological innovation, and trade globalization are critical for enhancing renewable energy supply shares and curbing carbon dioxide emissions in the long run. Therefore, considering these major analytical outcomes, some relevant policies are suggested for enabling the G7 countries to achieve some of the Sustainable Development Goals set by the United Nations that are closely related to undergoing green energy transition (SDG-7) and achieving environmental sustainability (SDG-13) through the channel of innovation (SDG-9).
