Innovation Strategies for Ecological Sustainability: Effects of Natural Resources and Energy Consumption

ABSTRACT To attain global ecological sustainability within the framework of ecological modernization, this study scrutinizes the multifaceted interaction among environmental‐related patent technologies (ERPT), natural resources, energy consumption (both renewable and nonrenewable energy usage) and globalization on the ecological footprint. To assess the novel aspects of the ongoing objective, this study employs Disc/Kraay, fully modified ordinary least square (FMOLS), and dynamic ordinary least square (DOLS) regression to generate comparative results across a panel of technologically advanced countries and resource‐rich least‐developed countries from 1990 to 2022. The empirical outcomes indicate that economies leading in eco‐friendly technologies and renewable sources of energy enhance environmental sustainability by minimizing their ecological footprint over time. In contrast, countries that rely heavily on natural resource extraction to meet energy demands tend to exacerbate ecological degradation. The process of globalization demonstrates the same trend for both developed and developing countries over the long term significantly elevating the level of ecological footprint. The Dumitrescu and Hurlin causality test discloses a reverse causal connection among concerning variables such as natural resources, ERPT, and energy reliance excluding globalization over the extended duration. The recommendations derived from the results suggest that governments in developing countries should strategically promote the adoption and dissemination of innovative, eco‐friendly resource extraction technologies. Meanwhile, governments in developed countries should focus on overhauling their ecological policies to play a crucial role in supporting and advancing ecological sustainability efforts in developing nations.