Advancing renewable energy strategies: Integrating technological innovation and economic complexity for sustainable resource management

Achieving sustainable energy management is essential for addressing global climate challenges and achieving the United Nations Sustainable Development Goals (SDGs), particularly SDGs 7 (Affordable and Clean Energy) and 13 (Climate Action). This study investigates how technological innovation (TI), economic complexity (EC), product complexity index (PCI), and renewable energy consumption (REC) interact to enhance natural resource efficiency (NRE) in resource-rich economies. Using panel data from 1995 to 2022, the study also explores the role of green technologies, digital readiness (DR), and mineral complexity (MC) in fostering a low-carbon future. The findings reveal that in the long run, TI and REC significantly enhance NRE, with coefficients of 0.932 and 0.235, respectively, while technological complexity (TC) and MC have negative effects (coefficients of −7.349 and −3.732), indicating challenges in managing resource complexity. In the short run, the negative and significant error correction term (ECT) confirms swift adjustment to equilibrium, with TI and TC showing positive impacts on NRE (coefficients of 2.329 and 3.067), reflecting immediate efficiency gains from technological advancements. The causality analysis reveals that there is unidirectional causality from TI to NRE (W-Stat: 8.243; Z̄: 2.828; p=0.005), from NRE to financial readiness (FR) (W-Stat: 7.925; Z̄: 2.580; p=0.010), and from NRE to DR (W-Stat: 9.515; Z̄: 3.819; p=0.000). Similarly, REC exhibits unidirectional causality towards NRE (W-Stat: 8.511; Z̄: 3.036; p=0.002), indicating that the adoption of renewable energy sources significantly improves resource efficiency. Unlike previous studies that focus narrowly on energy use or innovation in isolation, this study offers a comprehensive empirical framework integrating digital readiness, economic complexity, and technological innovation to assess their combined impact on NRE. The application of panel cointegration, error correction modeling, and causality analysis over a multi-decade, cross-country dataset enhances the methodological rigor and generalizability of findings. The study also demonstrates the critical role of EC and DR in improving renewable energy efficiency and supporting the transition to a low-carbon economy. By leveraging technological advancements and optimizing renewable energy systems, this research offers insights for policymakers aiming to integrate energy system innovations and economic strategies for sustainable development. The findings provide a comprehensive understanding of how economic and technological synergies can advance renewable energy solutions and contribute to global climate action.