Understanding environmental sustainability: How green tech,renewable energy,and regulatory quality are tackling carbon emissions in developing economies

Abstract

This study investigates the relationship between green technological innovation, renewable energy consumption, regulatory quality and carbon dioxide emissions in developing economies. Using a balanced panel dataset of 52 countries over 21 years, the analysis applies a panel quantile regression with mean group and common correlation effects to capture heterogeneous dynamics and GMM model for checking endogeneity further Heterogeneous panel causality results shows the perfect relation among them. The findings reveal that green technological innovation significantly reduces carbon emissions, while renewable energy consumption also mitigates emissions; however, its interaction with GDP displays an inverted U-shaped pattern, indicating that economic expansion combined with higher renewable energy use may initially increase emissions before improving environmental outcomes. These results highlight the importance of prioritizing technological innovation and strengthening renewable energy infrastructure to achieve long-term sustainability goals. The study provides policy-relevant insights for regulators and governments in developing countries to balance economic growth with environmental preservation, offering a practical framework to support global sustainable development objectives.