Natural Resource Efficiency: The role of Financial Development, Recycling and Eco-Innovation in ASEAN

Abstract

Rising concerns over environmental degradation that have been intensified with a global focus on efficient management of natural resources. Within this context, factors such as financial development (DD) and eco-innovation (EI) have been received increasingly with scholarly attention. This research aims to examine the impact of FD and EI on natural resource efficiency (NRE) within ASEAN economies, while integration of artificial intelligence (AI), urbanization (URB), and economic growth (GDPG) as additional determinants. With utilization of secondary data, the analysis employs the Method of Moments Quantile Regression (MMQR) for generating robust and distribution-sensitive estimates. The empirical outcomes shows that FD positively contributes to NRE, whereas EI shows no significant relationship. Moreover, recycling activity (RECY) shows a negative and statistically significant relationship with NRE. Within this contrast AI, GDPG, and URB are found to have significant and positive relationship on NRE. The research has advanced the current body of knowledge by applying a rigorous methodological approach and integration of emerging variables relevant to sustainable resource management. Additionally, this offers significant practical implications for government, regulatory bodies and policy makers seeking to enhance natural resource efficiency across ASEAN region.