Exploring the nonlinear impact of R&D on environmental degradation: the moderating role of natural resource rents

Purpose Growing concern about the environment has raised questions about the effectiveness of research and development in promoting sustainability. This study aims to examine the nonlinear relationship between research and development (R&D) and environmental degradation. In addition, it examines whether natural resource rents moderate the relationship between R&D and environmental degradation. Design/methodology/approach The study uses panel data from countries in the Association of Southeast Asian Nations (ASEAN) from 2013 to 2022. The ecological footprint and carbon emissions are used to measure environmental degradation. The analysis was conducted using panel quantile regression. Findings The findings indicate a significant nonlinear (U-shaped) relationship between R&D and environmental degradation. Additionally, natural resource rents weaken the positive effect of R&D on environmental degradation. Originality/value This study contributes to the body of knowledge on the relationship between R&D and environmental degradation. While previous studies have focused on a linear relationship, this study provides evidence of a nonlinear U-shaped relationship in the ASEAN context.