Abstract
The continuity of increasing Natural Resource Rents (NR) largely depends on these resources' sustainable Global Supply Chain Distribution (GSCD). In turn, a sustainable GSCD necessitates the presence of sustainable environmental (E), social (S), governance (G), and economic (ECON) factors (ECON-ESG), as well as technological advancements and sustainable development goals (SDGs) globally. Therefore, this study investigates the impacts of all the factors on NR within 33 OECD countries. CS-ARDL model is employed for this aim. The empirical findings reveal the positive impacts of economic factors, environmental aspects, and SDGs on NR. Conversely, the model finds negative effects of technological advancement and governance on NR. The negative impacts (contrary to expectations) of technological advancements on NR can be due to (i) technological advancements can encourage the development of non-natural resources such as renewable energy, causing less demand for and thereby less supply of natural resources and rents. This potential reason can be referred to as Schumpeter's (1942) “creative destruction theory,” which postulates that new technologies can replace older ones. (ii) Technological advancements may require high initial costs; therefore, investing in natural resources and updating technological infrastructure may be costly, reducing rents from natural resources. Therefore, given the complex interactions above, policymakers should implement tailored policies compatible with ECON-ESG and SDGs for a sustainable GSCD. Apart from the individual effects of each component of ECON, E, S, and G on NR, the impact of a single composite and comprehensive form of sustainability, ECON-ESG, developed and proposed by Isik et al. (2024c), on NR is negative. This new and proposed form of sustainability can enable policymakers and firms to review their economic, environmental, social, and governance policies holistically and manage their NR policies accordingly.
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