Greener Economies, Smarter Growth: Financial and Digital Drivers of Sustainable Development and Resource Sustainability

ABSTRACT This study examines how trade (TD), digitalization (DT), industrial growth (IG), financial technologies (FTs), and income per capita (IPC) influence natural resource rents (NRR) in G‐20 economies from 1990 to 2023. While prior research has considered these factors separately, little attention has been given to their combined role in shaping resource sustainability. Using balanced panel data and the Cross‐Sectionally Augmented Autoregressive Distributed Lag (CS‐ARDL) model, complemented by the Augmented Mean Group (AMG) estimator, we account for cross‐sectional dependence and slope heterogeneity. The results show that DT increases NRR through higher energy and material demand, whereas FT reduces depletion by supporting eco‐efficiency, renewable energy adoption, and circular economy practices. TD is associated with alleviating resource pressures via intra‐bloc TD, while IG and rising IPC exert mixed effects, amplifying consumption but also creating opportunities for efficiency gains. Robustness checks confirm long‐run relationships across all variables. Policy implications suggest that developed G‐20 members should focus on regulating data center efficiency and green finance disclosure, while emerging members require targeted support for industrial upgrading, small and medium‐sized enterprises access to FT‐driven green credit, and sustainable TD diversification. Overall, the findings highlight how digital and financial transformations can be leveraged to balance growth with natural resource sustainability.