Natural Resources, Technological Innovation and Environmental Quality: A Case Study of Developing Countries

Authors

  • Sadia Anjum Assistant professor of Economics University of Layyah, Pakistan
  • Kiramat Shamsher CECOS University of IT and Emerging Science, Peshawar, Pakistan
  • Sana Ahmed Root’s School, Pakistan
  • Shahab Ahmad Govt. Post Graduate College Mardan, Pakistan

DOI:

https://doi.org/10.47067/ramss.v8i1.430

Keywords:

Natural Resources, Technological Innovation and Environmental Quality, Developing Countries

Abstract

 

This study aims to analyze the influence of natural resources and technological innovation on environmental degradation in developing countries between 1996 and 2020. It uses natural resources, technological innovation, per capita GDP growth, urban population, renewable energy consumption, and trade openness as the dependent variables while environmental quality as the independent variable. Using GMM, the generalized method of moments, in estimating the relations between the chosen variables, indicated causal relations of the Granger causality test. A reliable source provided world development indicator data. The research shows that natural resources, technological innovation, renewable energy use, and growth in per capita GDP directly affect the quality of the environment. , and urban population, while negative association exists in the case of trade openness against environmental degradation. The trade openness is negative and significant on environmental degradation. It means that environmental quality improvement goes hand in hand with a decline in trade openness. The natural resources positively and significantly affect the environmental deterioration. Additionally, As technological innovation increases, environmental damage increases.

References

Adeyeye, A. D., Jegede, O. O., & Akinwale, Y. O. (2013). The impact of technology innovation and R&D on firms’ performance: an empirical analysis of Nigeria’s service sector. International Journal of Technological Learning, Innovation and Development, 6(4), 374-395.

Agboola, J. I. (2014). Technological innovation and developmental strategies for sustainable management of aquatic resources in developing countries. Environmental management, 54(6), 1237-1248.

Akinwale, Y. O., Adepoju, A. O., & Olomu, M. O. (2017). The impact of technological innovation on SME's profitability in Nigeria. International Journal of Research, Innovation and Commercialisation, 1(1), 74-92.

Ali, W., Abdullah, A., & Azam, M. (2016). The dynamic linkage between technological innovation and carbon dioxide emissions in Malaysia: an autoregressive distributed lagged bound approach. International Journal of Energy Economics and Policy, 6(3), 389-400.

Alvarado, R., & Toledo, E. (2017). Environmental degradation and economic growth: evidence for a developing country. Environment, Development and Sustainability, 19(4), 1205-1218.

Ave, P., & Babolsar, I. (2010). Environmental Performance Index and economic growth: evidence from some developing countries. Australian journal of basic and applied sciences, 4(8), 3098-3102.

Balsalobre-Lorente, D., Shahbaz, M., Roubaud, D., & Farhani, S. (2018). How economic growth, renewable electricity and natural resources contribute to CO2 emissions?. Energy Policy, 113, 356-367.

Bovenberg, A. L., & Smulders, S. (1995). Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model. Journal of public Economics, 57(3), 369-391.

Chen, P. Y., Chen, S. T., Hsu, C. S., & Chen, C. C. (2016). Modeling the global relationships among economic growth, energy consumption and CO2 emissions. Renewable and Sustainable Energy Reviews, 65, 420-431.

Chen, W., & Lei, Y. (2018). The impacts of renewable energy and technological innovation on environment-energy-growth nexus: New evidence from a panel quantile regression. Renewable energy, 123, 1-14.

Coccia, M. (2009). Measuring the impact of sustainable technological innovation. International Journal of Technology Intelligence and Planning, 5(3), 276-288.

Cropper, M., & Griffiths, C. (1994). The interaction of population growth and environmental quality. The American Economic Review, 84(2), 250-254.

Dogan, E., & Seker, F. (2016). The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries. Renewable and Sustainable Energy Reviews, 60, 1074-1085.

Gutti, B., Aji, M. M., & Magaji, G. (2012). Environmental impact of natural resources exploitation in Nigeria and the way forward. Journal of Applied technology in Environmental sanitation, 2(2), 95-102.

Gylfason, T., & Zoega, G. (2006). Natural resources and economic growth: The role of investment. World Economy, 29(8), 1091-1115.

Hassan, S. T., Xia, E., Khan, N. H., & Shah, S. M. A. (2019). Economic growth, natural resources, and ecological footprints: evidence from Pakistan. Environmental Science and Pollution Research, 26(3), 2929-2938.

Hillemane, B. S. M. (2012). Technological innovation in Indian SMEs: need, status and policy imperatives. Current opinion in creativity, innovation and entrepreneurship, 1(2).

Jayadevappa, R., & Chhatre, S. (2000). International trade and environmental quality: a survey. Ecological Economics, 32(2), 175-194.

Kahuthu, A. (2006). Economic growth and environmental degradation in a global context. Environment, development and sustainability, 8(1), 55-68.

Khan, I., Hou, F., & Le, H. P. (2021). The impact of natural resources, energy consumption, and population growth on environmental quality: Fresh evidence from the United States of America. Science of the Total Environment, 754, 142222.

Khan, Z., Ali, M., Kirikkaleli, D., Wahab, S., & Jiao, Z. (2020). The impact of technological innovation and public?private partnership investment on sustainable environment in China: Consumption?based carbon emissions analysis. Sustainable Development, 28(5), 1317-1330.

Khan, Z., Hussain, M., Shahbaz, M., Yang, S., & Jiao, Z. (2020). Natural resource abundance, technological innovation, and human capital nexus with financial development: a case study of China. Resources Policy, 65, 101585.

Loukil, K. (2016). Foreign direct investment and technological innovation in developing countries. Oradea Journal of Business and Economics, 1(2), 31-40.

Mak Arvin, B., & Lew, B. (2011). Does democracy affect environmental quality in developing countries?. Applied economics, 43(9), 1151-1160.

Miao, C., Fang, D., Sun, L., & Luo, Q. (2017). Natural resources utilization efficiency under the influence of green technological innovation. Resources, Conservation and Recycling, 126, 153-161.

Ndesaulwa, A. P., & Kikula, J. (2016). The impact of technology and innovation (Technovation) in developing countries: A review of empirical evidence. J. Bus. Manag. Sci, 4, 7-11.

Reardon, T., & Vosti, S. A. (1995). Links between rural poverty and the environment in developing countries: asset categories and investment poverty. World development, 23(9), 1495-1506.

Sinha, A., Sengupta, T., & Alvarado, R. (2020). Interplay between technological innovation and environmental quality: formulating the SDG policies for next 11 economies. Journal of Cleaner Production, 242, 118549.

Sinha, A., Sengupta, T., & Alvarado, R. (2020). Interplay between technological innovation and environmental quality: formulating the SDG policies for next 11 economies. Journal of Cleaner Production, 242, 118549.

Somanathan, E. (2010). Effects of information on environmental quality in developing countries.

Tabrizian, S. (2019). Technological innovation to achieve sustainable development—Renewable energy technologies diffusion in developing countries. Sustainable Development, 27(3), 537-544.

Villanthenkodath, M. A., & Mahalik, M. K. (2020). Technological innovation and environmental quality nexus in India: Does inward remittance matter? Journal of Public Affairs, e2291.

Downloads

Published

2025-01-02

How to Cite

Anjum, S. . ., Shamsher, K. ., Ahmed, S. ., & Ahmad, S. . (2025). Natural Resources, Technological Innovation and Environmental Quality: A Case Study of Developing Countries. Review of Applied Management and Social Sciences, 8(1), 17-34. https://doi.org/10.47067/ramss.v8i1.430