Role of financial development, environmental-related technologies, research and development, energy intensity, natural resource depletion, and temperature in sustainable environment in Canada

Environmental sustainability concerns are increasing worldwide; both developing and developed countries face environmental degradation. Literature has highlighted the environment-growth nexus; however, the impact of environmental-related technologies on the environment is ignored in early studies. This study aims to explore the implications of financial development, environmental-related technologies, research and development, energy intensity, renewable energy production, natural resource depletion, and temperature in a sustainable environment in Canada by using a time series model, i.e., dynamic ARDL simulations (Jordan and Philips 2018) with data from 1989 to 2020. The examined findings of the dynamic ARDL simulations indicate that environmental-related technologies in Canada help to reduce environmental degradation both in the short run and in the long run. At the same time, financial development, energy intensity, renewable energy production, research and development, natural resource depletion, and temperature causes boost the environmental degradation in Canada. To achieve sustainable environment, Canada needs to improve innovations in the environmental-related technologies for achieving sustainable growth and environment.

Automated summary

The study reveals that environmental-related technologies in Canada play a positive role in reducing environmental degradation, while financial development, energy intensity, renewable energy production, research and development, natural resource depletion, and temperature exacerbate environmental degradation. To achieve sustainable environmental development, Canada needs to strengthen innovation in environmental-related technologies.