Can sustainable resource management overcome geopolitical risk?

Abstract

Sustainable development is a serious concern for policymakers and researchers worldwide, as it requires the management of economic growth, social progress, and environmental protection. In this context, our study examines the influence of geopolitical risks, natural resource rent, and key economic factors on consumption-based carbon emissions within the G-7 countries. Based on panel data spanning from 1990 to 2020, our findings indicate a direct positive relationship between geopolitical uncertainties and carbon emissions, leading to heightened environmental damage. In contrast, revenues from natural resources show an inverse connection with emissions. Additionally, while higher imports and GDP escalate emissions, exports tend to mitigate carbon emissions. The current study contributes to the literature by highlighting the importance of promoting stable political environments and sustainable resource management practices to reduce carbon emissions and ensure resource efficiency for sustainable development in G-7 economies. These findings suggest that policymakers should prioritize environmentally friendly policies and encourage sustainable resource use to achieve sustainable development.