Energy supply from oil and gas, mineral depletion, and total natural resource rents: Impact of oil equivalent energy use CO2 intensity

Abstract

Oil and gas have traditionally been the primary energy sources used to fuel and power the world. However, due to the finite nature of these resources, the depletion of minerals and other natural resources is a growing concern. In addition, the impact of oil-equivalent energy use CO2 intensity on the environment is significant. This paper examines the nexus of energy supply from oil and gas, mineral depletion, and total natural resource rents in the United States from 1972 to 2016, using CO2 intensity as moderating variable. To this end, a time-series analysis is employed to analyze the data from the World Development Indicators. The parameters associated with the long-run dynamics suggest that the variables in the model can be used to explain the long-run dynamics of the economy. The results also suggest that the model can be used to forecast future economic developments. Electricity production from oil and mineral depletion is positively associated with natural resources. Electricity production from natural gas and CO2 intensity is negatively associated with natural resources in the United States. In order to reduce mineral depletion and protect natural resources, the United States should enact policies that consider the environmental and economic impacts of mining. These policies should include restrictions on the number of minerals that can be extracted and measures that incentivize conservation and sustainable mining practices. Additionally, the government should invest in research and development focusing on alternative sources of minerals and new technologies that can reduce the amount of minerals extracted from the earth.