Breaking the climate deadlock: Leveraging the effects of natural resources on climate technologies to achieve COP26 targets

Abstract

Since the Kyoto Protocol, the Paris Agreement, and COP26, global policymakers have been working toward energy transition (SDG-7), sustainable development (SDG-8), and the recovery of the green environment (SDG-13). In a recent groundbreaking study, the effects of natural resources (NR) on CMT, GDP, monetary policy (MP), environmental taxes (ET), and economic globalization (EG) are looked at in relation to a policy framework. This is done so that the above goals can be reached. To do so, the study utilizes the sample of G-7 economies while deploying the novel “General Method of Moment Quantile-based Regression (GMMQR) and “Panel Quantile ARDL” approaches. The results confirm that NR significantly contributes to encouraging the CMT industry through triggering green investment. Similarly, economic growth, ET, and EG also demonstrate a positive association with the CMT. However, MP indicates a sensitive association with the CMT such that a rise in the interest rate deteriorates the green technology industry. Additionally, the novel non-parametric panel Granger causality test determines the significant causal nexus, which runs from an independent to a dependent variable across the various quantiles, assuring the robustness of the aforementioned results. Considering the findings, the study suggests a phase-wise policy framework to attain the SDGs 7, 8, and 13.