Toward sustainable development goals 7 and 13: A comprehensive policy framework to combat climate change

The escalating impact of climate change stemming from greenhouse gas emissions within OECD nations necessitates a thorough examination of the interplay between various factors influencing CO2 emissions. Therefore, it is vital to analyzes the relationship between energy transition (ET), eco-policy stringency (EPS), green technovation (GT), and primary energy consumption (PEC) on CO2 emissions between 1995 to 2019 for 26 OECD economies. Notably, the study explores the interaction term of EPS with ET and GT, aiming for a thorough understanding of their impact. Employing Method of Moments Quantile Regression (MMQR) and robust estimations such as Fully Modified Ordinary Least Squares (FMOLS), Dynamic OLS, Fixed Effects Ordinary Least Squares (FE-OLS), and Dumitrescu and Hurlin (2012) causality tests, this study examines the varying impacts of variables across different quantiles. The MMQR results reveal that ET and interaction between EPS*GT reduce environmental degradation in all quantiles (10th to 90th), however EPS, PEC, and interaction between EPS*ET intensify carbon emissions. The robustness of outcomes is confirmed by FMOLS, DOLS, and FE-OLS methods. Causality tests indicate bidirectional associations of GT, ET, EPS, EPS*GT, and PEC with carbon emissions, while EPS*ET exhibits a unidirectional causal link. The implications suggest the critical importance of integrating green technovation and balanced eco-policy stringency and energy transition measures to effectively mitigate CO2 emissions. It emphasizes the need for dynamic, adaptive policies aligned with Sustainable Development Goals 7 and 13, focusing on sustainable energy practices and concerted climate action within OECD economies.