Role of natural resource rents, financial development and technological research in achieving sustainable development: A study of South Asian Countries

Abstract

Environmental sustainability and natural resource management are critical concerns in the modern era. While developed countries have received more attention in the literature, the contribution of developing nations towards carbon neutrality has been overlooked. This study addresses this gap by analyzing the role of natural resources in achieving carbon neutrality in South Asian countries from 1990 to 2021. Additionally, the research investigates the impact of financial development, renewable electricity, educational expenditure, and research and development (R&D) expenditure on carbon emissions. By employing non-parametric panel estimation approaches, the study confirms the co-integration of the variables. The findings reveal that financial development and educational expenditure significantly contribute to environmental degradation, while natural resources, renewable electricity, and R&D expenditures help reduce emissions across different quantiles, facilitating the attainment of carbon neutrality. The study emphasizes the importance of sustainable natural resource extraction, increased renewable energy production, and higher R&D investments to achieve carbon neutrality in developing economies. By providing empirical evidence and practical recommendations, this research contributes to understanding the relationship between these factors and their impact on carbon emissions, paving the way for effective policy interventions and sustainable development.