Evaluating the role of green innovation and global supply chain digitization in natural resource utilization for energy resilience: An empirical evidence from panel quantile regression

Abstract

Overexploitation of natural resources has globally become a major concern. This has prompted researchers to investigate the key factors that influence natural resource utilization and identify potential solutions to mitigate the associated issues. The excessive use of natural resources relies on supply chain distribution and green innovation development. To fill the literature and empirical gap, the present study evaluates the role of green innovation and global supply chain digitization in natural resource utilization. The study works on a global panel set of 133 economies from 1990 to 2023. The study uses the Simultaneous Panel Quantile Regression approach to capture the conditional distribution of natural resource usage across various economies, whereas the baseline regression model is pooled Ordinary Least Squares. The regression outcomes suggested the positive role of green innovation, digitization, and building materials in natural resource usage in the highest quantile. The resource impact of global supply chain distribution is reported to be positive in the highest quantile and negative in the lowest quantile. Furthermore, it was discovered that building materials had a favorable impact on the use of natural resources at every quantile. By showing how process and technology advancements can either improve or worsen resource usage, depending on their degree of application, the study substantiates the existence of the environmental rebound effect in 133 economies. According to the findings, authorities must concentrate on boosting digital supply chains and green innovation, encouraging eco-friendly technology, and putting plans in place to lessen the strain on natural resources. To move toward a more sustainable and knowledge-based economy, suggestions include enacting green taxes, offering financial incentives for environmentally friendly substitutes, luring in foreign direct investment, and bolstering green finance.