How do composite fiscal decentralization and human development promote inclusive green innovation in G7 countries?

Figures & data

Table 1. Variables of the study.

Sign	Status	Description	Measurement unit	Source
GI	Dependent	Green Innovation	Eco patents % of total patents	OECD Stat.
CFD	Independent	Composite Fiscal Decentralization	Index	Self-Calculated
R&D	Independent	Research and Development	R&D Expenditure % of GDP	OECD Stat.
HD	Independent	Human Capital Index	HD Index	Penn World Table 10

Source: the authors.

Table 2. CSD and slope homogeneity test.

Variables	CSD test
	F-value	P-value
GI	36.325***	0.000
CFD	27.854***	0.000
R&D	17.908***	0.000
HD	14.624***	0.000
Slope homogeneity test
Test	Value	P-value
$\widehat{\Delta }$	6.472***	0.000
${\widehat{\widehat{\Delta }}}_{\mathrm{adjusted}}$	7.986***	0.000

Note: ^***P < 1%.

Source: the authors.

Table 3. CIPS & CADF unit root tests.

Variables	CIPS		CADF
	I(0)	I(I)	I(0)	I(I)
GI	−2.487	−4.215***	−2.345	−4.576***
CFD	−1.690	−3.631***	−2.110	−3.970***
R&D	−2.035	−4.803***	−2.640	−3.746***
HD	−1.802	−3.687***	−1.652	−3.429***

Note: ^***P < 1%.

Source: the authors.

Table 4. Cointegration outcomes.

Statistics	Gt	Ga	Pt	Pa
Value	−5.760***	−10.628**	−8.621***	−12.040**
P-value	0.000	0.030	0.000	0.002

Note: ^***P < 1%, ^**P < 5%.

Source: the authors.

Table 5. Cross-sectional ARDL results.

Variables	Long-run			Short-run
	Coeff.	t-stats	Sig.	Coeff.	t-stats	Prob.
ECT-1	–	–	–	−0.253	−3.526	***
CFD	0.126	2.422	**	0.131	2.561	**
R&D	0.365	4.185	***	0.343	3.948	***
HD	0.265	2.532	**	0.218	2.290	**

Note: ^***P < 1%, ^**P < 5%.

Source: the authors.

Figure 1. Graphical representation of relationship.

Source: the authors.

Table 6. Robustness estimators.

Variables	CCEMG			AMG
	Coeff.	t-stats	Sig.	Coeff.	t-stats	Prob.
CFD	0.098	2.150	**	0.106	2.305	**
R&D	0.312	3.740	***	0.338	3.628	***
HD	0.239	2.507	**	0.266	2.507	**

Note: ^***P < 1%, ^**P < 5%.

Source: the authors.