Green technology, green electricity, and environmental sustainability in Western European countries

For Western European countries, many macroeconomic factors that have influenced environmental quality in several studies have been investigated. In this region, no empirical inquiry has explored the relationship between green technologies, renewable electricity, financial development, economic expansion, and eco-quality. To fill this gap, this inquiry is conducted to estimate the role of green technology innovation and green electricity on ecological balance in Western European countries. This study investigates how carbon dioxide emissions (CO2E) may be influenced by its determinants (economic expansion, renewable energy, environmentally friendly technology) through some robust econometric techniques (second-generation panel unit root, Westerlund cointegration, FMOLS, and DOLS). Empirical findings confirm that renewable electricity and environmentally friendly technological innovations reduce CO2E. However, the economic upsurge is positively correlated with CO2E, suggesting that expanding the market has a deterioration effect on environmental quality. Policymakers in this region should allocate more resources to renewable electricity generation capacities and green technologies in order to minimize environmental damage. Further, the promotion of green and low-carbon energy development will contribute to a new form of global environmental governance.