Evaluating the Interactive and Transformative Role of Innovation, Education, Human Capital and Natural Resources Policies in Protecting and Sustaining Environmental Sustainability

Abstract

Achieving environmental sustainability remains a critical challenge for governments worldwide, particularly within the G20 bloc, due to rapid urbanization, resource-intensive industrial activities, and the environmental pressures associated with globalization. Despite various efforts, ecological degradation continues to escalate, necessitating a deeper understanding of the factors influencing environmental sustainability. This study investigates the role of technological innovation (TLI), education (EDU), human capital (HMC), and natural resources (NTS) in shaping ecological sustainability, while also assessing the effects of globalization (GLN) and urbanization (URZ) on the ecological footprint (EFT) from 2000 to 2022. By employing the Driscoll and Kraay standard error (DKSE) method, the study provides robust empirical insights into these relationships. The findings reveal that TLI, EDU, and HMC significantly reduce EFT, supporting the notion that innovation and human capital development contribute to environmental sustainability. Conversely, NTS, GLN, and URZ exacerbate ecological degradation, underscoring the environmental costs of resource exploitation and urban expansion. These results remain consistent when validated through the CS-ARDL robustness test. Furthermore, the Dumitrescu-Hurlin causality test identifies reverse causality between NTS, EDU, and EFT, while unidirectional causality is confirmed for the remaining variables. The study’s findings highlight the necessity for policymakers to implement eco-friendly technological advancements, sustainable education frameworks, and responsible resource management strategies to mitigate environmental degradation. These insights contribute to the broader discourse on sustainable development and provide actionable recommendations for fostering long-term ecological balance in G20 nations.