The study explores how education influences green growth in G7 countries by examining its interaction with capital, trade, and foreign direct investment. It highlights that global environmental challenges have made green growth a necessity, and the G7 nations, which account for a significant share of the global economy and emissions, are central to this transition. Using econometric methods, the study finds long-term relationships among the variables and shows that education, capital, and trade generally support green growth, whereas foreign direct investment tends to hinder it.
Green growth, a concept emphasized since 2012, promotes economic progress while reducing environmental degradation through efficient resource use and technological innovation. While previous studies have examined environmental quality and economic growth separately, few have addressed the combined determinants of green growth, especially the role of education. This study fills that gap by demonstrating how higher education increases sustainability awareness, strengthens green skills, enhances technological advancement, and encourages shifts toward renewable energy and cleaner production.
Trade emerges as another important factor with both positive and negative implications. It can boost economic performance and accelerate technological progress, but without strong environmental standards it may also increase emissions and resource depletion. The study explains how exports can reduce emissions while imports may increase them, and how the environmental effects of trade depend heavily on regulation, technological capacity, and the structure of production.
Labor and capital also play central roles. Educated labor contributes to renewable energy adoption, efficient resource use, and the development of green industries, whereas low-skilled labor reliant on traditional practices can hinder green growth. Capital investment has mixed effects depending on whether it supports conventional or renewable energy systems, influencing sustainability outcomes accordingly.
Foreign direct investment similarly generates contradictory impacts. While it may transfer clean technologies and innovative practices, it can also encourage pollution-intensive industries to relocate to countries with weaker regulations. The study shows that in G7 countries, FDI has tended to reduce green growth, supporting the pollution haven hypothesis when environmental safeguards are insufficient.
The research makes several contributions, including assessing nonlinear effects of education, applying a comprehensive green growth index, and analyzing the joint influence of multiple economic variables. It offers evidence that higher levels of education strengthen environmental awareness and green innovation, producing stronger gains in green growth. Trade also shows a positive long-run impact, while capital’s effect is positive but not statistically strong.
The study concludes that to achieve sustainable development goals related to education, economic growth, and climate action, G7 nations should strengthen advanced education systems, promote sustainability-focused programs, and support research in green technologies. It emphasizes the need to redirect capital toward clean energy and eco-innovation, integrate environmental standards into trade, and ensure that foreign direct investment aligns with sustainability principles. These measures can help G7 countries enhance green growth while meeting global climate commitments.
The authors note some limitations, including the exclusive focus on G7 nations and the omission of other key variables such as environmental policy frameworks and renewable energy use. They suggest that future research should extend the analysis to other regions and include additional determinants of green growth for more comprehensive insights.
