Curing the resource curse with the adoption of resource-rich energy in MINT countries: An application of quantile regression

Abstract

Policy analysts have focused on environmental concerns along sustainable growth for the last few decades. Recently, resource-rich energy resources have gained much importance due to their alternative role in managing ecological concerns. The study intends to examine the connection between resource-rich energy consumption (RREC) and ecological footprint (EFP), considering the Environmental Kuznets Curves (EKC) framework. The data covered in the study ranged from 1960 to 2020. The empirical analysis is performed for the MINT countries (Mexico, Indonesia, Nigeria, and Turkey) by utilizing the panel Quantile regression (PQR) model. The findings indicate that an “inverted U-shaped relationship” exists between GDP and EFP that validates the EKC hypothesis for the sample economies. The analysis highlights that at a higher level of EFP the environmental quality deteriorating effect is stronger along with strong quality improving impacts. Further, RREC and EFP are negatively and significantly related, suggesting that RREC is an alternative energy source that helps control environmental pressure by reducing EFP in the MINT countries. According to the research, achieving sustainable growth in the future requires a shift from “conventional energy sources” to “green energy sources.” It also contributes to meeting the Paris Agreement's carbon-cutting commitments. Therefore, MINT economies should work together to develop RREC in their respective nations and collaborate with global economies to control global EFP. Additionally, funding RREC installation projects and appliances would enhance environmental quality and help to sustain steady growth.