Decoupling growth from carbon intensity in G-10 economies: the transformative roles of green innovation, renewable energy, trade, and fiscal policy

Reducing carbon intensity (CI) is essential for balancing fiscal development along with ecological sustainability in G-10 economies. Therefore, this work examines the linkages of economic development (EG), trade, population growth (PG), renewable energy (SES), green innovation (GRT), and fiscal development (FD) and CI during 1990–2023. Method of Moments Quantile Regression (MMQR) captures variation over quantiles, while Driscoll–Kraay estimation provides a robustness check. EG and FD show positive linkages, whereas SES, GRT, and trade show negative linkages; PG is positively associated at higher quantiles. The findings support expanding renewable energy, boosting cleaner technologies, and aligning public spending with low-carbon priorities. Targeted assistance for small businesses and households could improve energy efficiency and strengthen these policy efforts.