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Financial development as a viable tool in nation-building and economic expansion is generally established in growth empirics. That notwithstanding, its roles in the drives towards environmental sustainability have received commending and reprimanding views in recent times. However, empirical study advancing the asymmetric effects of financial development from the broader view of measures seems limited and evolving. Hence, the present study investigates the positive and negative effects of financial development measured by broad money and domestic credit to the private sector on environmental sustainability (CO2 emissions and ecological footprint) in the Emerging Seven (E7) economies from 1995 to 2019. The empirical evidence considers the intervention of government policy through fiscal policy instruments (government spending and tax revenue), eco-digitalization, affluence, and population growth in a STIRPAT framework. The main analyses focus on advanced estimators such as pool mean group, mean group, dynamic fixed effects, and panel quantile regression. Feedback shows that negative shocks from financial development captured by broad money induce more surges in CO2 emissions. Similarly, the negative shocks from domestic credit to private sectors promote CO2 emissions, while the positive shocks moderate the emissions. The findings also uncover eco-digitalization as a viable tool to achieve environmental sustainability in the E7 economies. Furthermore, the measures of fiscal policy have differing impacts on environmental sustainability as evident from the positive and negative signs attributed to government expenditure and tax revenue. Moreover, affluence and population growth exacerbate CO2 emission surges. Policy insights that drive environmental sustainability are suggested based on the findings. [ABSTRACT FROM AUTHOR]

Limiting CO2 emissions is crucial for sustainable development, environmental protection, and climate change mitigation, ensuring a more resilient and cleaner future. Prioritizing sustainable urbanization renewable energy, and energy efficiency is vital for achieving this prosperous and sustainable future. As a result, we adopt the Fourier testing approach for stationary, cointegration, estimator, and causality, to scrutinize the role of renewable energy, energy efficiency, and urbanization on CO2 emissions in Finland over the period between 1990 and 2020, controlling economic growth and trade openness. The empirical analysis of the Fourier ARDL estimator establishes that energy efficiency measures such as gas and oil efficiency exhibit an adverse effect on CO2 emissions, so energy efficiency mitigates CO2 emissions. Similarly, the study also found that urbanization and renewable energy reduce CO2 emissions. Conversely, economic growth and trade openness induce CO2 emissions. Additionally, the Fourier-Toda-Yamamoto method provides robust evidence regarding the long-term implications of the examined factors. Based on this result, the study emphasizes that implementing a regulatory framework to enhance energy efficiency, promote renewable energy adoption, and support sustainable urban development will be an essential strategy in the global effort to attain the net-zero emissions target, which offers valuable insights to other countries seeking to transition towards cleaner and more sustainable energy sources. [ABSTRACT FROM AUTHOR]