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Abstract
FROM FOSSILS TO GREEN: DRIVERS OF CO2 EMISSIONS IN ADVANCED ECONOMIES
*Besma Talbi, Lamia Arfaoui, Mona Alzahrani
ABSTRACT
This study examines the determinants of CO₂ emissions in the G7 countries (1990–2023) using an extended STIRPAT framework and panel econometric techniques (CS-ARDL, CCEMG, AMG). We assess the roles of economic growth, energy mix, environmental policies, green innovation, and financial development on both production- and consumption- based emissions. Results show that fossil fuel consumption increases emissions, while renewable energy, climate policies, and green innovation reduce them, with innovation effects amplified by developed financial markets. Partial EKC patterns are observed, and consumption-based measures highlight carbon leakage through trade. Robustness checks confirm the stability of findings, offering policy insights for sustainable low-carbon transitions.
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