Unveiling the Influence of Green Taxes, Renewable Energy Adoption, and Digitalization on Environmental Sustainability in G7 Countries

Nesrine Gafsi () and Sayef Bakari ()
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Nesrine Gafsi: College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Saudi Arabia
Sayef Bakari: Laboratoire d'Intégration Economique Internationale, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunisia

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 3, 735-757

Abstract: This study investigates the intricate interplay between environmental taxes, economic growth, renewable energy adoption, digitalization, and their combined impact on environmental quality across G7 nations. Positioned within the broader framework of sustainable development, environmental policy, digitalization, economic progress, and green energy, it employs sophisticated econometric methodologies like the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator to overcome data complexities such as cross-sectional dependence and slope heterogeneity. The findings offer valuable insights into the dynamic relationship between environmental quality, economic growth, renewable energy utilization, digitalization, and the efficacy of environmental taxation. Additionally, the study proposes targeted policy recommendations aimed at bolstering sustainable development efforts aligned with international accords like the Paris Agreement and the Sustainable Development Goals. These proposed strategies advocate for a nuanced approach to environmental taxation, the promotion of renewable energy adoption, and leveraging digitalization to bolster environmental sustainability efforts across G7 nations.

Keywords: Green Taxes; Renewable Energy Adoption; Digitalization; Environmental Quality; CS-ARDL; G7 Countries (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.18676

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