Natural resource rent, green finance, and CO2 emissions from the industrial sector

This study investigates the effect of natural resource rents and green finance on industrial sustainability in 20 OECD countries from 2010 to 2020, using the CCEMG-ARDL approach. Findings reveal that a 1% increase in green finance reduces CO₂ emissions by 0.43% in the short term and 0.27% in the long term, highlighting its role in supporting environmentally friendly investments. In contrast, a 1% rise in fossil fuel rents increases CO₂ emissions by 0.29% short-term and 0.05% long-term, showing the pollutive impact of fossil fuel profits. Additionally, a 1% increase in electricity usage raises CO₂ emissions by 0.41% short-term and 0.16% long-term, stressing the need for cleaner energy. Industry-specific patents show limited alignment with sustainability goals. Policy measures should target resource rent management, boost green finance, and encourage sustainable practices to promote industrial greening.