Sustainability in G7 Countries: Assessing the Roles of Green Technology, Energy Use and Energy Access

ABSTRACT Environmental quality (ENQ) is one of the most pressing challenges for sustainable development. This study uses carbon emissions (CO 2 ) as a proxy for environmental quality and examines the effects of energy use (EUS), energy access (ELC), and green technology (GT) on environmental quality in G7 countries over the period 1990–2020. Although previous studies have examined the environmental effects of green technology and energy‐related factors, limited evidence exists on their joint effects on environmental quality in G7 countries, particularly when oil price volatility and agricultural land are considered within the same empirical framework. To address this gap, the study evaluates whether green technology, through environmentally friendly technologies, practices, and projects, can contribute to environmental improvement and support long‐term ecological sustainability. The augmented mean group (AMG) and common correlated effects mean group (CCEMG) panel data estimators are employed. Robustness analyses are additionally conducted to verify the consistency of the empirical findings. The results provide strong evidence of a significant relationship between green technology and environmental quality, indicating that GT contributes to reducing environmental degradation and improving environmental outcomes in G7 countries. In contrast, energy use, energy access, oil price volatility (OIL), and agricultural land expansion (ARI) are found to increase CO 2 emissions and negatively affect environmental quality. These findings confirm that green technology represents an effective policy instrument for improving environmental quality. Given the trade‐off between economic development and environmental protection, the results emphasize the importance of accelerating green technological transformation and sustainable energy policies. Accordingly, policymakers are encouraged to expand green financing and R&D incentives for environmental technologies, accelerate the transition toward low‐carbon energy sources, improve energy efficiency in energy‐intensive sectors, and promote sustainable agricultural practices to mitigate land‐related emissions. Diversifying the energy mix can also help reduce the environmental pressures associated with oil price fluctuations, thereby strengthening long‐term environmental sustainability in G7 economies.