Green investment, institutional quality, and environmental performance: evidence from G-7 countries using panel NARDL approach

The greatest danger to the global economy for sustainability and success is environmental performance. As long as human development increases with time, it creates a huge burden on the economic system due to environmental crisis (Hammed and Arawomo 2022). During the growth process, human efforts could also lead to environmental performance.

The performance can be in the form of air pollution and some other forms that pose a serious threat to human beings. Therefore, any government’s primary goal should be to protect the environment. It is commonly accepted that protecting the environment is essential for maintaining human life and promoting national sustainability (Huo et al. 2020; Saarinen et al. 2020; Su et al. 2022).

Global temperatures have increased along with population growth to 1.9 °F as of 1880; sea levels have risen 178 mm in the past century; and greenhouse gas (GHG) emissions have increased to 413 parts per million, the highest level in 650,000 years. Challenging climate change may currently be the major environmental and developmental concern (Aswani et al. 2021; Bhat et al. 2022). 

All countries express concern over green technologies as the world is experiencing greenhouse gases and changes in the climate which in turn impacts the environment as well as the economy. Innovation returns humiliation of the environment without compromising development and growth.