Addressing the resource curse: Empirical analysis of greenhouse gas mitigation strategies for sustainable development

Abstract

The phenomenon of the resource curse and its implications for sustainable development is of paramount importance for contemporary societies. The study specifically explores the impact of resource extraction by infrastructure companies during the construction process, on environmental sustainability and public health. The challenges posed by the resource curse are highlighted and also scrutinizes the interconnection between health, carbon emissions, and other macroeconomic variables in the United States, spanning 1990–2022 for sustainable development. The respective study attempts to measure health in two ways, (i) Physical Health (Life Expectancy) and (ii) Mental Health (Depression). The findings of the ADF test show that variables are stationary at a level I(0) and at the first difference I(1) as well, which indicates the use of the ARDL technique. Hence, the ARDL estimation approach to find the short and long-run relationships between variables. First, the findings for our depression model illustrate that an increase in carbon emissions and unemployment deteriorates the physical health of an individual; however, improves with the upsurge in economic growth. Second, the life expectancy model indicates that sustainable economic growth enhances the life expectancy of an individual however, posits a decline in life expectancy with the rise in carbon emissions and inflation. Further, the application of CUSUM and CUSUM of a square verifies the stability of our model. A sustainable, prosperous, and healthier future can only be achieved by successfully integrating physical activities like promoting active transportation (walking and cycling), and efficiently utilizing resources like creating blue and green spaces into greenhouse gas mitigation strategies hence creating a room that leads to overall sustainable development in an economy.