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Environmental Resilience in E7 Emerging Economies: The role of Mineral Complexity, Renewable Energy and Innovation in driving Sustainable Growth

Author

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  • Hassan, Zohaib
  • Xu, Deyi
  • Shah, Abbas
  • Tehseen, Sanam
  • Hassan, Anees Ul
  • Hassan, Waseem
  • Ali, Yasir

Abstract

Over the past two decades, climate change has emerged as a global challenge, with mineral resources playing a crucial role in the transition to cleaner energy. International agreements have driven a shift from fossil fuels to renewables. This study investigates the influence of the mineral complexity index, renewable energy consumption, and technological innovation on CO2 emissions and economic growth in the E7 countries from 2000 to 2021. Econometric methods address cross-sectional dependence and heterogeneity, with a cointegration test confirming long-term relationships. The Method of Moments Quantile Regression (MMQR) results indicate that mineral resources and technological innovation consistently reduce CO2 emissions and boost economic growth across quantiles. Technological innovation enhances the efficient extraction and utilization of minerals, thereby reducing environmental harm. The negative impact of renewable energy on economic growth is due to high initial investment costs, which can strain economies in the short term. However, the long-term benefits of reduced energy costs and sustainability could boost economic growth. Bidirectional causality is identified among minerals, technology, renewable energy, and CO2 emissions, as well as between the mineral complexity index and growth. These insights inform policymakers and governments on optimizing resource use, renewable energy adoption, and investing in green technology to achieve the SDGs, offering guidance for addressing environmental challenges.

Suggested Citation

  • Hassan, Zohaib & Xu, Deyi & Shah, Abbas & Tehseen, Sanam & Hassan, Anees Ul & Hassan, Waseem & Ali, Yasir, 2026. "Environmental Resilience in E7 Emerging Economies: The role of Mineral Complexity, Renewable Energy and Innovation in driving Sustainable Growth," Renewable Energy, Elsevier, vol. 256(PE).
    • Handle: RePEc:eee:renene:v:256:y:2026:i:pe:s0960148125017458
    DOI: 10.1016/j.renene.2025.124081
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