How do economic and financial factors influence green logistics? A comparative analysis of E7 and G7 nations

Logistics is an important sector that supports every sector of the economy, and thus, the development of nations is impossible without efficient logistics. Alongside this, the logistics sector generates various kinds of emissions that degrade the quality of the environment. Developed countries are striving to introduce green logistics to avoid environmental damages caused by transportation. Also, developing countries will start focusing on developing green logistics sooner or later. Keeping this in view, a comparative panel study on the group of seven (G7) and Emerging Seven (E7) nations is conducted to study the impacts of various economic and financial variables on green logistics. The data from 1996 to 2018 is analyzed using some reliable methods that produce efficient and consistent results during heterogeneity and cross-sectional dependence. The findings disclosed that cointegration is present in E7 and G7 panels. For E7 countries, the results disclosed that research and development (R&D), FDI, portfolio investment, and trade openness reduce green logistics. However, in the G7, R&D, FDI, portfolio investment, and trade increase green logistics. The empirical analysis did not show any meaningful impact of financial development and economic growth on green logistics in both groups of nations. Lastly, based on the comparative analysis, various policies are suggested for E7 to catch up with the G7 regarding logistics development. Also, policies for G7 are suggested to boost green logistics.