Examining the nexus of mineral resources, technology adoption, and economic expansion in advancing sustainable development in OECD economies

Abstract

In a time when advanced economies are struggling with both environmental stability and sustainable development, the need for striking a balance between using natural resources and protecting environmental quality is paramount. As the consumption of natural resources quickens, environmental pollution and energy-related emissions concerns amplify. This research explores the complex relations of environmental quality in seven OECD nations for three decades (1990–2020), focusing particularly on the effects of natural resources. Utilizing advanced econometric methodologies, including fully modified OLS and dynamic OLS, it reveals the significant role of natural resources, alongside digitalization and economic expansion, in contributing to environmental degradation. These combined factors impede the journey towards carbon neutrality. However, investment in human resources and renewable energy usage emerge as key components in lowering emissions and pushing economies towards this crucial objective. The study highlights the dilemma of industrialized countries: the reliance on natural resources for economic growth versus the necessity of environmental conservation. The results act as a plea for sustainable regulation of finite resources, increased funding in human capital, and a heightened emphasis on research and innovation. It further recommends advocating for the production and consumption of renewable energy. By shedding light on the tangled relationship between these factors and environmental quality, the study provides valuable understandings for decision-makers and interested parties. These insights play an essential role in strategizing for sustainable development and reducing environmental degradation, contributing significantly to discussions on achieving a balanced and sustainable future.