The role of technological innovation in enhancing resource sustainability to achieve green recovery

Abstract

This research employs the CS-ARDL approach to explore the intricate connection between patent applications and fossil fuel consumption across high-income and non-high-income countries from 2000 to 2022. In high-income nations, there is a notable reduction in consumption, indicative of their emphasis on innovation and environmental commitment. Conversely, non-high-income countries experience an uptick in consumption, primarily attributed to economic growth and resource limitations. While factors such as urbanization, industrialization, and Foreign Direct Investment (FDI) exert influence, their impact on steering sustainable energy practices remains limited. The bidirectional causal relationship between fuel use and patents underscores their dynamic interaction. Policy recommendations advocate for supporting green startups, fostering sustainable cities, and digitizing green finance in high-income countries. On the other hand, non-high-income nations are advised to concentrate on green education, importing technology, implementing green patent regulations, and establishing local green funds to expedite progress.