Exploring the nexus between structural capital, carbon neutrality and sustainable competitiveness: Evidence from natural resource exploitation in the post-COVID-19 era

Abstract

In the aftermath of global commitments post the Paris Climate Conference, the onus on developing nations to achieve sustainable economic growth and carbon neutrality has intensified. The mining sector, particularly in major economies like the People’s Republic of China and India, stands at the forefront of this challenge due to its significant carbon footprint. Despite the sector’s pivotal role in carbon emissions, scant research has delved into the influence of structural capital in achieving carbon neutrality and sustainable competitiveness within this domain. To address this lacuna, the present study scrutinizes the interplay between structural capital, carbon neutrality, and sustainable competitiveness, employing panel data from 2015 to 2019. Advanced panel estimators are utilized, taking into account nuances such as cross-sectional dependence, stationarity, and potential structural breaks. The findings illuminate that adept management of structural capital not only bolsters carbon neutrality but also enhances sustainable competitiveness. Furthermore, carbon neutrality emerges as a significant mediator in the relationship between structural capital and sustainable competitiveness. These insights are buttressed by robustness checks. In light of these revelations, the study advocates for strategic integration of environmental considerations in the mining sector’s operations, emphasizing the adoption of green practices and carbon emission reduction measures. The paper concludes by offering both theoretical insights and pragmatic recommendations for the mining sector’s trajectory towards a carbon-neutral future.