Dual issue of resources and emissions: Resources richness and Carbon Emissions with Oil rents, trade, and mineral rents exploration

Abstract

Climate change is a global issue of paramount importance, posing significant challenges to the sustainability of our planet. The issue of climate change and its associated challenges have garnered considerable attention from researchers worldwide. The BRICS nations hold a significant position in contributing to global CO2 emissions. These countries have experienced rapid economic growth and industrialization, which have led to an upsurge in energy consumption and subsequent CO2 emissions. Natural resources play a crucial role in the economic development of nations, including the BRICS countries. However, the extraction and utilization of these resources can have significant environmental consequences, including CO2 emissions. Hence, understanding the impact of natural resource rents on carbon emissions becomes particularly relevant. This study aims to analyse the relationship between natural resource rents (forest rents, mineral rents, and oil rents) and carbon emissions in the BRICS countries over the period of 1989–2021. Using advanced analytical approaches, we find that resource rents, along with imports, and GDP are positively related with carbon emissions. The finding implies that the economic benefits derived from forest resources, such as timber production and ecosystem services, may contribute to increased carbon emissions through activities like deforestation and land-use changes. Moreover, we find that exports reduce CO2 while higher levels of imports are associated with higher levels of emissions in BRICS nations.