Navigating the Influence of Financial, Economic and Technological Factors on Environmental Sustainability: Insights from MMQR Approach

Muhammad Naeem Shah; Dr. Muhammad Sadiq Shahid

doi:10.63056/

Authors

Muhammad Naeem Shah PhD Scholar, Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan Author
Dr. Muhammad Sadiq Shahid Professor of Finance, Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan Author

DOI:

https://doi.org/10.63056/

Keywords:

GDP, Technological Innovation, FDI, Industrialization, Regulatory Framework, Green Energy, Green Finance

Abstract

This study investigates the effect of financial, economic and technological factors on environmental sustainability in 63 economies using a panel data spanning from 2002 to 2022. For data estimation cross-sectional dependence test, slope heterogeneity, CIPS panel unit root test, Pedroni, Kao and Westerlund cointgeration tests and MMQR approach are used. The analysis shows that GDP is positively and GDP² is negatively linked to the CO₂ emissions and ecological footprint at different quantiles suggesting that EKC is holds in the panel of 63 countries. In addition, green energy, green finance, technological innovation and regulatory framework are improving the environmental quality. Lastly, industrial activities and FDI is found to be positively linked to the CO₂ emissions and ecological footprint at different quantiles. Keeping in view the study outcomes, it is concluded that financial, economic, and technological factors significantly impact environmental sustainability. Economic growth often conflicts with sustainability, and technological advancements can mitigate or exacerbate environmental harm, highlighting the need for balanced, inclusive, and sustainable policies.