Examining the interplay between fossil fuel mining, sustainable growth, and economic prosperity

Abstract

This study investigates the relationship between green energy integration, income levels, and fossil fuel mining in 12 emerging economies across Asia and Latin America from 2000 to 2019. Utilizing the CS-ARDL (Cross-sectionally Augmented Autoregressive Distributed Lag) methodology for empirical analysis, we find a substantial link: the adoption of green energy corresponds to a notable reduction in fossil fuel mining. This connection is nuanced, influenced by factors like the growing adoption of renewable energy sources, increasing environmental awareness, and rapid technological advancements. Notably, efforts to enhance energy independence, diversify economies, and reduce emissions further strengthen this positive trend. Conversely, higher income per capita is associated with increased fossil fuel mining due to heightened industrialization and economic growth. Additionally, industry value added, trade openness, and financial development are positively correlated with fossil fuel mining, while CO2 emissions show an inverse relationship. We propose targeted policy interventions, such as green energy investments and emission taxation, to mitigate fossil fuel mining and promote sustainability in emerging economies.