The Role of Energy Transition, Digitalization, and Green Goods in Material Footprints and Sustainability

ABSTRACT This study investigates how green and non‐green goods, energy transition, digitalization, economic growth, and population affect the material footprint of G‐7 countries from 1990 to 2023. Using an extended STIRPAT framework, we show that green and non‐green goods increase material footprint, demonstrating the resource intensity associated with production and consumption patterns. Economic growth and population further intensify resource demands, underscoring structural environmental pressures. On the other hand, energy transition and digitalization reduce material footprint, indicating that renewable energy and digital technologies enhance resource efficiency. Overall, the findings highlight the trade‐off between economic expansion and material sustainability in technologically advanced economies. Policy implications include reducing the material intensity of green goods through circular economy practices, expanding clean energy investment, and leveraging fintech to support more sustainable consumption, thereby enabling G‐7 nations to better align prosperity with material sustainability.