Open Access Article

Innovating for a Greener Future: Assessing the Impact of Renewable Energy, Resource Efficiency, and Technology on CO₂ Emission Reduction

Authors

Mahnaz Muhammad Ali(1) Mahnaz Muhammad Ali Affiliation Associate Professor, Department of Economics, The Islamia University of Bahawalpur, Pakistan Other articles by this author , Rehana Kousar(2) Rehana Kousar Corresponding author Affiliation PhD Scholar, College of Economics & Management Northwest A&F University, China Email addressrehanakosar35@gmail.com.pk Other articles by this author , Mahrukh Ruba(3) Mahrukh Ruba Affiliation M.Phil. Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan. Other articles by this author , Samar Abbas(4) Samar Abbas Affiliation PhD Scholar, College of Economics & Management Northwest A&F University, China Other articles by this author , Qurat Ul Ain(5) Qurat Ul Ain Affiliation M.Phil. Scholar, Malik Firoz Khan Noon Business School, University of Sargodha, Pakistan Other articles by this author

  1. Associate Professor, Department of Economics, The Islamia University of Bahawalpur, Pakistan
  2. PhD Scholar, College of Economics & Management Northwest A&F University, China
  3. M.Phil. Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan.
  4. PhD Scholar, College of Economics & Management Northwest A&F University, China
  5. M.Phil. Scholar, Malik Firoz Khan Noon Business School, University of Sargodha, Pakistan

https://doi.org/10.36923/jcmi.v6i2.675

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Abstract

This paper explores how CO2 is emitted in 30 developing Asian economies. Such countries differ in terms of income levels, such as low, middle, and high income, and the years between 1990 and 2022 are included in the study. It employs a powerful econometric model in which both the System Generalized Method of Moments (GMM) is used to overcome dynamic endogeneity and Two-Stage Least Squares (2SLS) is used to overcome potential reverse causality. This integrated methodology serves well to investigate the impacts of renewable energy use, the availability of natural resources, and technological innovation on the level of emissions.  These findings of the study demonstrate a complex dynamic. There is presently a positive relationship between technological innovation and the rise in emissions, which can be attributed to the fact that technology is used to streamline the industrialization process that uses fossil fuels on a large scale. On the contrary, renewable energy and natural resources also contribute to the decrease in CO2 emissions. One of the biggest revelations is that production-oriented industrialization, particularly after China's entry into the WTO in 2001, has contributed greatly to the growth in global emissions. Since, in most cases, the area lacks powerful and effective environmental laws, this study emphasizes the necessity of modifications in policy. Steps such as promoting green innovation technology and introducing a price on carbon are crucial to uncoupling economic growth and emissions and creating an efficient global climate policy.

Article information

Keywords
CO2 emissionstechnological innovationnatural resourcesrenewable energysystem GMMEKC
Section
Articles
Issue
Vol. 6 No. 2 (2025)
Submitted
October 29, 2025
Accepted
December 25, 2025
Published
December 30, 2025
Corresponding author
Rehana Kousar
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