The Impact of Different Tree Species on Enhancing Thermal Comfort Circular Economy, Green Technologies, and Fiscal Policy: Pathways to Ecological Sustainability and Resource Productivity in OECD Countries

Abstract

Global environmental degradation and resource scarcity are among the most critical challenges of the 21st century. OECD (2020) projects a doubling of material consumption by 2060, with over 90 billion tons of resources currently extracted annually and ecological footprints exceeding 1.75 Earths—indicating we consume resources 75% faster than the planet can regenerate them. The last two decades have witnessed OECD countries generating exponential economic growth and currently account for around 60 percent of the global GDP. This growth, however, has come at an extremely high environmental cost, with natural resources being consumed at an alarming rate—material consumption levels jumped by 70 percent since 2000—so questions are being raised about the commitment of these countries toward sustainable development goals (SDGs). This study looks at the interactions between Circular Economy (CIRC), green-enabling technologies (GET), and government green budgets (GGB) with resource productivity (RP) and ecological footprint (EF) through panel data from 23 OECD countries (2001- 2021). Employing the CS-ARDL model, findings reveal that CIRC and GET robustly enhance RP and reduce EF in both the short and long term. GGB, meanwhile, supports RP in the short term and contributes positively to ecological sustainability across both time horizons. These results are further validated using the CS-ECM approach. The study underscores the need for policymakers to strengthen CIRC frameworks, optimize GGB allocation strategies, and accelerate the deployment of GET to foster sustainable development. By leveraging these interconnected tools, OECD countries can significantly advance their progress toward achieving the SDGs by 2030.