Exploring the Criticality of Natural Resources Management and Technological Innovations for Ecological Footprint in the OECD Countries

Abstract

ABSTRACT: The urgent imperative to confront the complex interplay between managing natural resources and fostering technological innovation, particularly in OECD countries, has become a focal point in global conversations. It is abundantly clear that critical issues such as the rampant overexploitation of our natural resources, insufficient embrace of sustainable practices, and the profound repercussions of technological advancements on our ecological footprint demand meticulous scrutiny and comprehensive action. This scrutiny is vital to guide the formulation of judicious policies and strategies capable of addressing these complex challenges. The challenges faced by OECD countries, distinguished by their advanced industrialization, and elevated standards of living, are further compounded by the depletion of natural resources resulting from extensive economic activities. The extraction and utilization of resources, encompassing water, minerals, and energy, emerge as significant contributors to ecological degradation. The heightened demand for raw materials to sustain technological industries has precipitated the overexploitation and depletion of natural resources, manifesting in activities such as mining, deforestation, and other extraction processes, leading to habitat destruction and biodiversity loss. Furthermore, the manufacturing and utilization of technology, particularly within industries heavily reliant on non-renewable energy sources, have been substantial contributors to pollution and greenhouse gas emissions. The study assesses the dynamic relationship between natural resources, economic growth, and technological innovation with respect to ecological footprints. It analyses the annual data series of a panel of 20 organisation for economic cooperation and development countries using the second-generation cointegration panel and cross-sectional autoregressive distributed lag methodology. The results of the slope coefficient confirm the existence of slope heterogeneity among countries. Furthermore, it affirms the long-term relationship among variables. Overall, the findings highlight the importance of effective utilisation of resources while investing in technological innovation to attain sustainable development goals.