Consolidating sustainable development in G7 economies: the role of green production process, energy transition, environmental policy stringency, and economic globalization
Abraham Ayobamiji Awosusi, Tunde Sodiq Taiwo, Berna Uzun
Abstract
Achieving sustainable development remains a central objective in contemporary policy discourse, with the transformation of production systems toward greener, low-emission alternatives emerging as a major priority for governments aiming to address environmental issues. As a result, green production processes have gained strategic relevance; however, the empirical insight into the environmental implications of green production processes, particularly in advanced economies remains limited. This study’s objective addresses this gap by exploring the impact of green production processes, energy transition and environmental policy stringency on sustainable development, measured by the load capacity factor (LCAP), in G7 nations. Using panel estimators complemented by distribution-sensitive checks, their empirical findings establish that green production processes, energy transitions and economic globalization significantly contribute to LCAP, suggesting that the improvement in ecological sustainability can be achieved through the promotion of green industrial practices, economic globalization and energy transition initiatives. Meanwhile, environmental policy stringency exhibits a negative impact on ecological quality in G7 nations. Furthermore, the result of the causality test shows that green production processes, energy transition, environmental policy stringency, and economic globalization play important roles in influencing LCAP, with environmental policy stringency also being shaped by feedback effects from LCAP. We offer valuable policy insights for policymakers and stakeholders seeking to advance sustainable development objectives.