Investigating the Role of Environmental Taxes, Green Finance, Natural Resources, Human Capital, and Economic Growth on Environmental Pollution Using Panel Quantile Regression

Abstract

Natural resources (NRs) are important for the operation of any economy and are crucial for preserving environmental quality. However, the persistent utilization of NRs has led to a severe deterioration of environmental quality. This presents a vulnerability to the steadiness of the ecosystem, emphasizing the urgent requirement to achieve a harmonious equilibrium concerning the utilization of NRs and the conservation of environmental quality. Environmental taxes (ETs), green finance (GF), and the cultivation of a proficient workforce dedicated to achieving sustainable development are essential for attaining equilibrium and advancing the Sustainable Development Goals (SDGs). We aim to investigate the impact of NR, ET, GF, and the human capital index (HCI) on environmental pollution (PM2.5, CH4, CO2, and N2O) in the G20 countries from 2000 to 2022. This study employs a novel and cutting-edge MMQR methodology, offering distinct perspectives that diverge from the conclusions of previous research. The study’s findings suggest that excessive use of NRs contributes to the degradation of environmental quality. ET, GF, and economic growth help to improve environmental quality, but HCI has a harmful impact. The paper proposes that the establishment and enforcement of environmental regulations are crucial for attaining ecological integrity and meeting SDGs 7, 12, and 13.