Exploring the Nexus Among Financial Advancement, Natural Resources Rent, Green Innovation and Environmental Quality in Pakistan

Muhammad Adnan Afzal, Waqar Ahmed, Nasir Abbas and Muhammad Naeem Shah

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 1, 39-52

Abstract: Purpose- This study examines environmental quality in Pakistan, a developing economy that emphasizes the roles of financial advancement and sustainable energy in shaping environmental policy decisions.Methodology/Design/Approach: This study employed a dynamic autoregressive distributed lag (ARDL) model to analyze the relationships between key economic and environmental variables.Findings: This study found that financial advancement, resource rents, and economic growth significantly increased pollution emissions, while green innovations effectively reduced them. We identified one-way causal relationships among these factors, indicating that ecological degradation also affects the interplay between green technologies and financial advancement.Implications: Our findings suggest that achieving net zero emissions, as per the Paris Agreement, is feasible through enhanced investment in green technologies and foreign capital in Pakistan's resource sectors. This study provides policymakers with evidence-based insights into designing effective environmental sustainability strategies that balance economic development with ecological preservation.

Keywords: Financial Advancement; Green Innovations; Natural Resource Rents; Economic Growth; Environmental Quality (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:1:p:39-52

DOI: 10.26710/sbsee.v7i1.3234

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