Natural resources management and technological innovation under EKC framework: A glimmer of hope for sustainable environment in newly industrialized countries

The association between natural resources and environmental destruction has major ramifications for the ecosystem, and technological innovations are considered an imperative tool to address these challenges. Therefore, this study examines the dynamic association between natural resources, technological innovation, and environmental sustainability using annual data of newly industrialized countries (NICs) from 1990 to 2019. We applied advanced panel cointegration techniques and confirmed that natural resources and technological innovations have a stable long-term association with ecological sustainability. The long-run results from the CrossSectional ARDL estimator indicate that natural resource rent limits environmental sustainability while green technological advancements help reduce ecological deterioration. Similar findings are observed in the short run; however, the coefficients' magnitudes are higher in the long run. Moreover, the validity of the Environmental Kuznets Curve (EKC) hypothesis is also confirmed in NICs. These results are consistent with robust alternative estimators and emphasize the significance of suitable policies for efficient natural resources management through technology innovations and the accomplishment of sustainable development goals.