The impact of natural resource management, innovation, and tourism development on environmental sustainability in low-income countries

Abstract

Natural resource depletion and the effects of global warming on the environment have emerged as urgent worldwide challenges. Many countries have responded by implementing plans to manage their natural resources and deal with environmental issues in the post-COVID-19 era. However, innovative abilities are frequently limited in low-income countries (LICs), which makes it difficult for them to successfully offset environmental consequences. It is crucial to comprehend the possible contributions that innovation, tourism, and the availability of natural resources can make to resolving these issues. This study focuses on examining how innovation, tourism, and environmental degradation relate to LICs richness of natural resources. To establish the reliability of the results, empirical analysis utilizing data from 2000 to 2020 of LICs was carried out using the Feasible GLS, Prais-Winsten Regression, Driscoll-Kraay standard error regression, and Non-Parametric Kernel regression models. The findings show that natural resources have a beneficial effect on environmental degradation in LICs. Natural resource-dependent sectors are thought to use energy-intensive procedures, which contribute to greater emissions, in countries where the share of natural resource rent in GDP is higher. Higher levels of innovation may not always result in environmental sustainability in LICs, as the study also demonstrates a positive association between innovation and environmental degradation. Although there is a link between tourism and environmental deterioration, it is possible that the growth of tourism in LICs will encourage the transition to a less carbon-intensive service-based economy.