Impact of adaptation technologies and green energy on environmental quality: Evidence from G8 economies

Abstract

The current era calls for an urgent need for environmental protection, and adaptation technologies stand as forerunners of innovations, putting transformative solutions to cope with the issues relating to the environment. Moreover, the imperative to adapt to frequently changing climate is at the heart of sustainable development goals. Understanding the dire need for adaptation technologies as an essential tool for building resilience and enhancing the load capacity factor to raise environmental quality, the present study focuses on the group of eight (G8) industrialized countries over the period from 1990 to 2020, to explore the role of adaptation technologies (ATEC) and green energy (REC) on the environmental quality (LCF). The empirical outcomes generated through Panel Quantile Regression (PQR) verify the existence of the LCC hypothesis in highly industrialized economies. The results show that ATEC positively and significantly affects LCF with an increasing rate from middle to upper quantiles. In contrast, REC has continuously an increasing impact throughout the quantiles with high significance. The robust outcomes are also endorsed by employing Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS). The study takes into consideration several Sustainable Development Goals (SDGs) like SDG 09 (adoption of technologies), SDG 07(green energy and renewable energy consumption), SDG 13 (climate action), SDG 14 (life below water), SDG 15 (life on land), SDG 03 (good health and well-being), SDG 06 (clean water and sanitation), SDG 11 (sustainable cities and communities), SDG 12 (responsible consumption and production), and SDG 17 (partnership for goals) while formulating policy implications, particularly for G8 economies.