Nexus of natural resources exploitation, social protection, and sustainable environment: COP27 is a sufficient solution?

A pervasive threat regarding human health, ecological balance, progress, and sustainability marks the current era. Many nations are grappling with the consequences of climate change and global warming caused by excessive carbon emissions from various harmful activities. Consequently, while some nations face resource constraints, they also work hard to keep the environment clean and green to promote sustainable growth. Concerns about the effects of climate change and global warming have recently shifted the focus of national governments and policymakers. Furthermore, these issues take center stage in developed nations due to the scarcity of natural resources, leading to increased carbon emissions. This research uses a panel data set that covers the top 20 developed countries from 2000 to 2021 to examine the relationship between nature's bounty (NAT) and welfare (SP) and carbon emissions (CO2). The next-generation panel assembly root test verified that all indicators were stationarity at the first difference, and the cross-sectional dependence (CSD) mirrored the panel countries' CSD. The second-generation cointegration technique (Wester Lund and Edgerton) was used to find an equation involving the variables. The rigorous check by the Cup-BC test and long-run empirical estimates from the Cup-FM estimation highlighted that technical innovation, social protection, and higher levels of green energy contribute to greater environmental sustainability and lower CO₂ emissions. Environmental quality declines and CO2 emissions rise in developed countries due to population, natural resource availability, and economic complexity index. The study's results may illuminate the reasons for environmental deterioration and propose solutions.