The impact of green technological innovation and environmental policy on ecological sustainability: evidence from leading economies

Nabila Abid, Junaid Aftab and Aamir Javed
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Nabila Abid: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Junaid Aftab: Tongji University
Aamir Javed: UNICH - Universita' degli Studi "G. d'Annunzio" Chieti-Pescara

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Abstract: The increasing ecological footprint of industrialized economies poses a significant threat to global sustainability. While green technological innovations and environmental policies are widely recognized as key strategies for mitigating environmental degradation, their effectiveness remains debated. This study examines the impact of green technological innovations and environmental policies on ecological sustainability in leading economies. Using annual data from 1994 to 2021 and the moment quantile regression model, the study incorporates control variables such as natural resource rent, renewable energy consumption, and gross domestic product. The findings reveal that green technological innovation and environmental policies consistently reduce the ecological footprint, with more potent effects at lower quantiles, suggesting that economies with better environmental practices benefit more from these interventions. Additionally, the study demonstrates that natural resource rent and gross domestic product positively contribute to ecological degradation, emphasizing the need for sustainable and controlled resource management. However, renewable energy is crucial in mitigating environmental harm across all quantiles. These insights highlight the necessity of strengthening environmental regulations and fostering green technological innovation to drive ecological sustainability in industrialized economies. This study provides a novel quantile-based perspective on sustainability strategies, offering valuable policy guidance for balancing economic growth with ecological responsibility.

Keywords: Environmental policy; Green technological innovations; Ecological footprint; Natural resource; Leading industrialized economies (search for similar items in EconPapers)
Date: 2025-06-04
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Published in Letters in Spatial and Resource Sciences, 2025, 18 (14), ⟨10.1007/s12076-025-00405-2⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05123320

DOI: 10.1007/s12076-025-00405-2

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