CrazyMom told Jacob that the lighted cave contained "life, death, and rebirth," that is in every living creature. This life force is a secular divinity. If one can postulate that the Big Bang created the ever expanding universe, it also created the basic building blocks for all life as we know it. Life depends on death, death depends on life; the circle of life is a closed system.
When MIB joined his mother's castaways, he found the people inventive and smart. They had ideas about how to use the EM energy to try to get home. MIB found the EM energy underground, so they dug wells and caves to find it. What was interesting in his final discussion with CrazyMom was that they were going to dig out a space in the wall, and use a wheel and water.
Now this space was not the frozen donkey wheel that Ben and Locke used to time travel. The cave which CrazyMom showed Jacob contained the green light energy and water.
I doubt if the writers thought this through as an explanation of the light, but the island could be the well spring for life, using the principles of photosynthesis as the scientific basis. Electromagnetic radiation (such as sunlight) interacts with carbon and water in plants to create chemical reactions for which fuels the plants and omits oxygen as a byproduct.
Taking this one step further, if this "light" is part of each person, it could be conceptually be considered a person's "soul." For each person's soul to be in balance with nature, a spiritual guardian would need to protect the source of the life force from imbalance. Therefore, the island guardian is like a tech operator at a nuclear generator - - - making sure that the life reactor is safely in balance with the universe. What is certain is that this pocket of energy and life force is probably not in the same dimension as Earth. It is more probable that the island is like a cell nucleus, transmitting the vital information the cell (universe). Messing with the nucleus could lead to problems, such as cell division (multiverses), clones, or the death of the universe itself.
After MIB's death, it is apparent that Jacob and/or Smokey continued to bring the intelligent individuals to the island in order to harness the power of the life force energy: Romans, Greeks, Egyptians, the military in the 1950s who developed the hydrogen bomb, to Dharma which was a diverse scientific research community. Apparently, each of these great intellectual civilizations failed to fathom or harness the power of the life force, as MIB refrained that they all fail in the end. Jacob called it progress to the end. So maybe Jacob and Smokey were on the same page for thousands of years, using human intellect to find a way to harness the power of the life force, to change their untenable lives.