A deep connection among the natural resources, technical progress, efficient energy and sustainability: The mediating role of governance

Abstract

Many changes in the environment are causing worry among people all around the world. Several variables are at play here, including climate change, desertification, deforestation, coastal ecosystem erosion, land degradation, excessive fishing, extinction of species, and biodiversity loss. These problems, according to many observers, are the long-term, cumulative effect of human activity on the environment, which has significantly altered Earth's surface. Society and the economy cannot be improved without using natural resources. Yet, environmental deterioration and resource depletion have resulted from unsustainable usage, putting human and environmental health at risk. Reducing carbon emissions is often believed to depend on technological advancements. Using data from 2000 to 2021, this research intends to examine the 20 Emerging economies' CO₂ emissions concerning its potential drivers, including conservation of energy and materials, technical innovation, and governance. We provide more comprehensive evaluations of various multivariate econometric methods, including various cointegration approaches (e.g., Padroni and Kao), long-run estimates of fixed and random effects, robustness checks using cointegration regressions (e.g., FMOLS and DOLS), and the frequency-domain PMG method. Although technical innovation and good governance can improve the environmental quality of emerging economies, our findings demonstrate that energy and land conservation reduce CO2 emissions. Furthermore, carbon emissions are adversely affected by the governance interaction term (GOV) with natural resources. Policymakers may use these results to help Emerging Markets achieve sustainable development.