Advancing Resource Efficiency Through Renewable Energy, Green Innovations, and Education: Lessons from G20 Economies

Resource efficiency (RSE), which refers to the relationship between natural raw materials and the benefits gained from their use, aims to maximize the efficiency of production and consumption processes while minimizing resource consumption and waste. This concept has become critical for environmental sustainability, as it helps reduce adverse environmental impacts and prevents the depletion of resources. Academic, technological, and financial factors play a pivotal role in promoting RSE for a sustainable future. Therefore, this study investigates the complex interactions between education (EDC), financial practices (FPR), renewable energy (REN), natural resources (NRS), and green innovations (GRN) and their impact on RSE in G20 countries from 2000 to 2022. To capture both the short-run and long-run effects of these variables on RSE, the study employs the advanced cross-sectional autoregressive distributed lag (CS-ARDL) method. Additionally, the robustness of the results is reinforced using augmented mean group (AMG) and common-correlated effects mean group (CCEMG) techniques. Empirical findings from the CS-ARDL analysis indicate that FPR and NRS positively correlate with RSE, suggesting that effective financial practices and sustainable management of natural resources promote greater resource efficiency. In contrast, GRN, REN, and EDC are negatively associated with RSE, highlighting the need to balance efficiency improvements with sustainable practices in these areas. The robustness of these results, as confirmed by AMG and CCEMG analyses, strengthens the reliability of the study’s conclusions. This research provides valuable insights for G20 policymakers, offering practical recommendations to enhance RSE by integrating ecological, academic, technological, and financial considerations, thereby contributing to the achievement of sustainable development goals (SDGs).