Navigating Environmental Concerns: Unveiling the Role of Economic Growth, Trade, Resources and Institutional Quality on Greenhouse Gas Emissions in OECD Countries

In an era where there is heightened worldwide attention towards environmental issues, the findings obtained from this study have the potential to contribute to policy-making processes that are grounded in empirical data. These policies are intended to foster sustainable economic development, decrease the release of greenhouse gases, and alleviate the negative consequences associated with climate change. The present study undertook a detailed analysis of key factors across OECD countries, encompassing the time period from 1990 to 2022. We utilized robust analytical techniques, such as the Method of Moments Quantile Regression, together with stringent diagnostic testing, to validate and strengthen our findings. The present study has successfully shown a robust and statistically significant correlation between economic expansion and the emission of greenhouse gases. This highlights the significance of implementing sustainable growth strategies that consider the environmental consequences. The findings suggest that both trade openness and globalization are inversely related to emissions, underscoring the potential advantages of international collaboration in mitigating carbon footprints. The study revealed that the emissions were highly influenced by the quality of institutions, highlighting the crucial importance of strong regulatory frameworks and effective environmental governance in controlling emissions. The influence of total natural resource rent and renewable electricity generation on emissions trends has been identified, highlighting the significance of sustainable resource management and the shift towards green energy. The findings of this study have substantial significance for OECD countries as they confront the complexities associated with climate change and the pursuit of environmental sustainability. It is advisable for policymakers to take into account the many effects of economic growth, trade, globalization, resource management, the adoption of renewable energy, and institutional quality on emissions.