Green innovation for resource efficiency and sustainability: Empirical analysis and policy

Green innovation and resource efficiency have been addressed as two essential drivers in achieving sustainable economic growth in developing countries. The primary purpose of this research is to evaluate the relationship between green innovation, resource efficiency, and sustainable economic growth in E7 (China, Indonesia, Mexico, Russian Federation, Turkey, Brazil, and India) by the Generalized Method of Moments (GMM) technique from 2010 to 2021. The results confirm that green innovation and resource efficiency positively and significantly impact green economic growth in the countries examined. In addition, the estimation results depict the negative impact of the labor force on green economic growth, while the coefficient of FDI (Foreign Direct Investment) is not statistically significant. The recommended practical policies by this research are developing green FDI, promoting green financing tools, and enhancing green job creation through SMEs (Small and Medium Enterprises).