Role of green innovation technologies and urbanization growth for energy demand: Contextual evidence from G7 countries

In the context of rising energy demand, environmental degradation, and resource scarcity in G7 countries, the prime objective of this research is to explore the role of green innovation technologies, economic progress, and urbanization in energy demand. The long-standing relationship between green innovation technologies, urbanization, trade, and G7 countries from 1990 to 2020 was analyzed using the Kao and Pedroni cointegration test, panel causality, and dynamic and fully modified ordinary least squares methods. Empirical findings suggest that trade, gross domestic product per capita, and urbanization enhance energy demand, whereas environmental technology reduces energy consumption. The econometric results support promoting environmental technologies (“smart technology,” renewable energy, carbon dioxide removal, and electric vehicles) as policy tools to reduce energy demand and achieve sustainable development goals related to clean energy, a pollution-free climate, and green growth. Moreover, an energy conservation policy is recommended to ensure efficient energy use in G7 countries. In addition, novel implications in the context of the Sustainable Development Goals (SDG-7, 13) are discussed.