Examining the natural resources-ecological degradation nexus: The role of energy innovation and human capital in BRICST nations

Abstract

The growing global consensus on addressing climate change and advancing environmental sustainability underscores the need for effective environmental and natural resource management frameworks to achieve ecological balance. This study contributes to ongoing policy discussions by examining the impact of green energy innovation, economic growth, human capital, and natural resources on ecological footprints in the BRICST economies from 1992 to 2020. The objective of this study is to assess the relationships between green energy innovation, economic growth, human capital, natural resources, and ecological footprints in the BRICST economies, providing insights into the factors influencing environmental sustainability. To achieve this objective, we employ various econometric methods, including the method of moments quantile regression, Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, and Fixed Effects Ordinary Least Squares. These methods allow us to analyze the impact of the selected variables on ecological footprints comprehensively. Our analysis reveals noteworthy findings. Firstly, green energy innovation has a positive influence on environmental sustainability, suggesting that investments in eco-friendly technology can lead to reduced ecological footprints. Conversely, we find that human capital, economic growth, and natural resources are associated with increased environmental challenges, indicating the need for careful management of these factors. Causality tests confirm the presence of a unidirectional causal relationship between ecological footprints to green energy innovation, economic growth, and natural resources. Additionally, we identify a unidirectional causal association between human capital to ecological footprints. We advise policymakers to encourage structural changes and the adoption of green energy technology in the production sector. These steps will help address environmental challenges and promote ecological sustainability in BRICST economies, in line with global climate change efforts.