The effects of energy transition and technological innovation on environmental quality: a CS-ARDL analysis of G7 economies

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.