The role of mineral resources, sustainable finance, and innovation in promoting sustainable development under the IRA 2022

Under the Inflation Reduction Act (IRA) of 2022, promoting sustainable development has gained significant attention, particularly concerning mineral resources, sustainable finance, and innovation. This study investigates the interplay between these factors and their role in advancing sustainable development objectives. Through the utilization of asymmetrical relationship analysis, specifically the Nonlinear Autoregressive Distributed Lag (NARDL) approach, the study examines the potential impact of natural resources (NTR), sustainable finance (SUSFIN), and innovation (INNO) on environmental sustainability (ENV). The findings reveal intriguing dynamics. Positive shocks in natural resources (NTR) tend to contribute to increased CO2 emissions, while negative shocks lead to a reduction in CO2 emissions. Conversely, negative shocks in sustainable finance (SUSFIN) and innovation (INNO) are associated with higher CO2 emissions, whereas positive shocks are linked to emission reduction. These results underscore the importance of a balanced integration of natural resources, sustainable finance, and innovation to achieve a synergistic effect in promoting environmental sustainability. Based on these findings, a strategic amalgamation of these elements is recommended to maximize their positive impact on sustainable development. By effectively leveraging mineral resources, sustainable finance, and innovation within the framework of the Inflation Reduction Act, policymakers and stakeholders can contribute to a more sustainable future, aligning with the goals and objectives of the IRA.