Consumption-based Carbon Dioxide Emissions and Their Impact on Energy Productivity in the G7 Countries

In recent decades, environmental degradation has gained considerable momentum. Researchers worldwide have focused on pollution because of its impact on billions of people. With the growing demand for fossil fuels on developing markets, little global consensus has been reached about reducing energy consumption and carbon emissions. Past literature suggests that international trade has positive socio-economic results, yet experts consider the scarcity of natural resources and environmental degradation caused by international trade. But empirical studies are not available on the links between energy productivity and carbon dioxide based on consumption in the environmental economic literature. The aim of this paper is to fill this knowledge gap by analyzing the impact on CO2 emissions for the G7 countries between 1990 and 2018 of international trade (imports and exports), eco-innovation, energy production, and renewable energy consumption by exports, imports, eco-innovation, GDP, renewable energy consumption, and energy productivity.