The Role of Public R&D Spending, Technological Innovation, and Renewable Energy in Advancing Sustainable Development: Evidence from G7 Countries

Abstract

Achieving the Sustainable Development Goals has become a global priority, with COP28 emphasizing clean-energy financing and investment to advance sustainable development. However, many countries and regions still struggle to identify relevant policy-level indicators to encourage engagement with sustainability, even as rising reliance on fossil fuels accelerates global warming and environmental degradation. In this context, designing an effective policy mix is important for achieving sustainable development objectives. This study evaluates the primary determinants of sustainability in the G7 economies using panel data from 1990 to 2022. The study uses the CS-ARDL estimation. The findings reveal that public R&D spending on energy is positively associated with sustainable development in the short term (0.074) and long term (0.106). Additionally, Green technological innovation and renewable energy significantly improve sustainable development. In contrast, economic growth is negatively related to sustainable development. The study also suggests that public R&D spending, green technological innovation, and renewable energy help to reduce carbon emissions. Based on these outcomes, policymakers should prioritize greater investment in renewable energy infrastructure and implement policies that promote sustainable development and accelerate long-term sustainability across G7 economies.