Examining the Revolutionary Impacts of Eco-Innovation, Digital Economy, Renewable Energy, and Economic Growth on Environmental Sustainability

This study probes into the roles of eco-innovation, digital economy, renewable energy, and economic growth in environmental sustainability of Middle-East and North African regions over the period 1990–2022. We used panel vector autoregressive model in a generalized method of moment’s approach. The empirical results revealed that the research and development, information and communication technology, and renewable energy negatively influence carbon emissions, indicating their immense contribution to environmental sustainability among Middle-East and North African countries. Again, the authors discovered that the gross domestic product and population were detrimental to environmental sustainability since they significantly and positively influenced the carbon emissions of both regions. Similarly, the variance decomposition and impulse response outcomes indicate that the effect of a single standard deviation shock in the rise of research and development, information and communication technology, patents, renewable energy, gross domestic product, and population on carbon emissions varies in terms of elasticity and magnitude across these regions over the sample period. This analysis reveals the dynamic interplay between these components, underscoring these variables’ pivotal roles in achieving environmental sustainability.