Abstract

Global economies have intensified efforts to achieve sustainable development in response to increasing environmental degradation, creating an urgent need for innovative green solutions. This study examines the effects of oil rent, digital innovation, GDP, and renewable energy consumption on OPEC countries’ ecological footprint from 2000 to 2022. The study uses various methodologies of Pooled Mean Group-Autoregressive Distributed Lag, Fully Modified Ordinary Least Squares, and Dynamic Ordinary Least Squares to analyze short- and long-term dynamics of variables. It reveals that GDP and oil rent can worsen environmental deterioration by increasing energy consumption and resource dependency. On the other hand, digital innovation and renewable energy use can promote environmental sustainability by reducing ecological burdens and transitioning to cleaner energy alternatives. This highlights the potential of promoting environmental resilience through technological advancements. The study highlights the need for policymakers, particularly in OPEC nations, to align economic growth strategies with environmental sustainability objectives. It emphasizes the importance of digital innovation, renewable energy, and economic diversification to achieve carbon neutrality and meet COP28 obligations. The findings support a strategic focus on digital innovation and renewable energy to accelerate global economies’ progress towards sustainable development and environmental resilience.

 Keywords: OPEC Countries, Digital Innovation, Ecological Footprint, Renewable Energy