This study examines the impact of financial, economic, and technological factors on environmental sustainability in developing economies by using panel data from 2002 to 2022. The Method of Moments Quantile Regression (MMQR) approach used to capture the heterogeneous effects of technological, economic, and financial factors on environmental sustainability. The results revealed that GDP exerted positive, while GDP 2 exerted negative, impact on CO₂ emissions and ecological footprint (EF) across different quantiles, confirming the validity of the Environmental Kuznets Curve (EKC) hypotheses in developing economies. Moreover, green energy, green finance, and strong regulatory frameworks were found enhancing environmental quality, whereas technological innovation and industrialization were positively associated with CO₂ emission and EF across multiple quantiles. Findings suggested that positive linkages among study variables developed countries have made substantial investments in green technologies while developing countries continue to face financial constraints that hinder sustainable progress. Economic growth often conflicts with environmental objectives, and technological advancements can either mitigate or intensify environmental degradation; underscoring the need for balanced, inclusive, and sustainable development strategies. Policy implications highlighted the importance of designing environmental frameworks that attract foreign investment to improve productivity while safeguarding environmental quality. Governments are advised to expand green credit facilities for households for the support the replacements of energy intensive appliances (alternatives). Furthermore, developing countries should invest in research and development (R&D) of green technologies and promote awareness towards adoption of renewable and environmentally friendly sources for energy.
Bajaber et al. (Sun,) studied this question.