Does tradeoff between financial and social indicators matters in environmental consideration: evidence from G7 region

The study tries to discover the impact of financial and social indicators' growth towards environmental considerations to understand the drivers of economic growth and carbon dioxide emissions change in G7 countries. The DEA-like composite index has been used to examine the tradeoff between financial and social indicator matters in environmental consideration by using a multi-objective goal programming approach. The data from 2008 to 2018 is collected from G-7 countries. The results from the DEA-like composite index reveals that there is a mixed condition of environmental sustainability in G-7 countries where the USA is performing better and Japan is performing worse among the set of other countries. The further result shows that the energy and fiscal indicators help to decrease the dangerous gas emissions. Divergent to that, the human and financial index positively contributes to greenhouse gas emissions. Fostering sustainable development is essential to successfully reduce emissions, meet established objectives, and ensure steady development. The study provides valuable information for policymakers.

Automated summary

The study reveals that there is a mixed condition of environmental sustainability in G7 countries, with the USA performing better and Japan performing worse among the set of other countries; energy and fiscal indicators help to decrease dangerous gas emissions while human and financial indicators positively contribute to greenhouse gas emissions; fostering sustainable development is crucial to successfully reduce emissions, meet established objectives, and ensure steady development.