Advancing G20 Carbon Neutrality: Unpacking the Green Energy Supply-Ecological Degradation Nexus Under Green Innovations

Abstract

This study investigates the determinants of environmental degradation in G20 countries, which account for a substantial share of global economic activity, energy consumption, and ecological pressure. Given their central role in both contributing to and potentially mitigating environmental challenges, examining sustainability drivers within this group is critically important. The study analyzes panel data for G20 economies over the period 2010-2024, employing the Quantile Generalized Method of Moments (Q-GMM) approach to capture heterogeneous effects across different levels of ecological footprint. The empirical results reveal that green growth, green trade, green energy supply, and green technology innovation all exert significant negative effects on ecological footprint, indicating their effectiveness in reducing environmental degradation. Among these, green trade and technological innovation demonstrate particularly strong impacts. Furthermore, the findings show that green technology innovation plays a crucial moderating role by strengthening the environmental benefits of green growth, trade, and energy transition. These results highlight the importance of integrating economic, technological, and environmental strategies. From a policy perspective, the study suggests that G20 countries should adopt a coordinated approach that simultaneously promotes green growth, expands green trade, accelerates renewable energy adoption, and strengthens innovation systems to achieve long-term environmental sustainability.