Does the combining effects of energy and consideration of financial development lead to environmental burden: social perspective of energy finance?

In light of the rapidly growing industrialization in BRICS and G7 regions, thorough energy, financials, and environmental analyses are essential for sustainable financial development in these countries. In this context, this work analyzes the relationship between energy, financial, and environmental sustainability and the regions' social performance. Data from 2000 to 2017 is analyzed through a data envelopment analysis (DEA) like a composite index. Results show China and Brazil's better performance in the region, with a sustainability score of 0.96, India was the third, followed by South Africa and Russia. Japan, the UK, and the USA were the most energy-efficient countries for five consecutive years. A 0.18%, 0.27%, 0.22%, 0.09%, 0.31%, and 0.32% reduction in carbon emission is observed with a 1% increase in R&D costs by Canada, France, Germany, Italy, Japan, and the USA, respectively. This work contributes to the existing literature regarding an eco-friendly sustainable policy design for the G7 countries based on multiple indicators.

Automated summary

China and Brazil showed better performance in the BRICS and G7 regions, while Japan, the UK, and the USA were the most energy-efficient countries. The study found that an increase of 1% in R&D costs led to a reduction of 0.18%, 0.27%, 0.22%, 0.09%, 0.31%, and 0.32% in carbon emissions in Canada, France, Germany, Italy, Japan, and the USA, respectively.