Asymmetric effects of digitalization, natural resources, capital formation, and green innovations on environmental sustainability in ASEAN countries

Abstract

The present study provides new insights by presenting the role of digitalization, natural resources, capital formation, and green technology innovations in environmental sustainability. It uses Panel Corrected Standard Errors (PCSE) and Method of Moments Quantile Regression (MMQR) to integrate asymmetric drivers of sustainability in ASEAN countries data from 2000 to 2021.The study's findings established a long-run positive association between natural resources, digitalization, capital formation, and ecological footprints in PCSE estimation, whereas green technology innovations exert no significant impact on ecological footprints in ASEAN countries. The MMQR findings also provide similar evidence over varying quantiles. However, the coefficient parameters vary at lower and higher quantiles, implying that the impact of all variables substantially varied in highly and lower ecologically damaged countries. These findings offer valuable policy implications.