COP27 Perspective of Food, Land Resources and Digitalization for Sustainable Economy: Novel Evidence From Lower-Middle-Income Countries

Abstract

Economies in the environmentally conscious era follow the 27th Conference of the Parties' commitments to attaining environmental sustainability. However, using alternative energy sources reduces arable land and diminishes land resources, severely affecting food production, exports, and overall income. This issue raises concerns about attaining a sustainable economy, which has attracted little scholarly attention in the preceding literature. The present research examines the influence of food exports, digitalization, access to clean fuel and technologies for cooking, mineral resources, and oil resources on the economic sustainability of lower-middle-income economies. Covering the latest period from 1990 to 2022, this study uses several time series estimators to analyze the aggregate data of selected economies. The empirical results suggest that the mentioned variables are cointegrated in the long run. The regression estimates showed that food exports and mineral resources are adversely associated with economic sustainability. However, access to clean fuel and technologies for cooking and digitalization significantly contributes to the region's economic sustainability. Nonetheless, the role of oil resources is insignificant but negative, which validates the resource curse phenomenon in the region. The results are robust since these estimations are validated by regression accounting for structural breaks. This study recommends investment in clean energy resources, efficient mineral resource management, and the transition to clean energy to accomplish the 27th Conference of the Parties target and attain sustainable development.