Does innovation in ocean energy generations-related technologies in G7 countries reduce carbon dioxide emissions? Role of international collaboration in green technology development and commercial and monetary policies

Recognizing that innovation in renewable energy generation is an effective way to improve sustainable energy generation, the government and industries in the G7 states have invested heavily in the development of novel green technologies related to ocean energy generation. Irrespective of this, the existing literature has failed to explore the nexus between innovation in innovation in ocean generation-related technologies (IOEGT) and carbon dioxide emissions (CO(2)e). This paper contributes to the environmental economics by looking at the linkage between IOEGT and CO(2)e, with the international collaboration in green technology development (ICGTD), gross domestic product per capita (GDPPC), expansionary monetary policy (EMP), expansionary commercial policy (ECM), contractionary monetary policy (CMP), renewable energy consumption (REC), and contractionary commercial policy (ECM) in the G7 states from 1990 to 2020. The Westerlund and Edgerton (2008) test validated the long-run association among IOEGT, EMP, ECM, ICGTD, CMP, REC, ECM, GDPPC, and CO(2)e. The cross-sectional-autoregressive-distributed lag estimators found the following main findings. First, IOEGT is a helpful tool for reducing CO(2)e. Second, ICGTD and REC were associated with a lower level of CO(2)e. Third, EMP and ECP contribute to an increase in carbon emissions. However, CCP and CMP are essential to the long-term reduction of CO(2)e. Fourthly, GDPPC exacerbates the negative effects of CO(2)e.