Environmental Sustainability in Advanced Economies: A G7 Perspective on Inclusive Growth, Fintech, Globalization and Environmental Policy Measures

Abstract

This study examines how inclusive growth, environmental policy incentives, fintech innovations, and globalization affect G7 environmental sustainability. The Paris Agreement objectives raise global concerns about anthropogenic carbon emissions and their environmental impacts, so this research examines the ecological footprints of the world most economically and politically powerful nations. Inclusive growth is assessed for its ability to decrease economic and social inequality, which may worsen environmental degradation. Fintech role in shaping industrial and economic activities can improve environmental damage. The study examines globalization economic, social, and ecological effects, acknowledging that regulatory frameworks and corporate governance practices affect outcomes. The research uses fixed effect methods to explore longitudinal data from 1990 to 2024 to determine how these variables affect environmental outcomes, specifically ecological footprints. Findings suggest that fintech ability to reduce environmental degradation depends on its policy context, emphasizing the importance of environmental policy incentives to promote sustainable behaviors and clean technology adoption. Globalization effects on sustainability, appear to be moderated by institutional quality, suggesting that effective governance mechanisms are essential to reaping its benefits and minimizing its environmental risks. Addressing structural inequalities through inclusive growth may reduce environmental harm. Moreover, the study examines the multifaceted relationship between economic growth paradigms, technological advances, and environmental governance by focusing on the G7 economies. Policy recommendations emphasize strict environmental regulations, green technology, and economic diversification to reduce resource rents. To preserve ecological integrity, the research recommends balancing economic development and environmental sustainability.