Mineral rents, natural resources depletion, and ecological footprint nexus in high emitting countries: Panel GLM analysis

Abstract

Natural resource depletion is a serious problem facing many countries today. As minerals and other natural resources are extracted from the ground, they are not replaced, leading to biodiversity loss and environmental degradation. The problem of natural resource depletion is compounded by the fact that, in many cases, mineral rents are not used to help replenish the resources being taken out of the ground. This study examines the impact of mineral rents and natural resources depletion on the ecological footprint in the high emitting countries from 1973 to 2019, using general government final consumption expenditure and international trade as moderating variables. Mineral rent and international trade are negatively associated with the ecological footprint. In contrast, general government final consumption expenditure and natural resource depletion are positively associated with an ecological footprint in the top emitting countries. Government expenditure and natural resource depletion deteriorate the environment, while mineral rents and exports of goods and services improve the environment. By investing in green technologies, the highest-emitting countries can reduce their ecological footprint and increase sustainability. In conclusion, the policy implications for mineral rents are clear – reducing the ecological footprint of the highest-emitting countries. By levying mineral rents, governments can ensure that companies pay their fair share for the resources they extract and raise revenue to fund environmental protection and renewable energy projects. This will help to reduce emissions and improve air quality, making the highest-emitting countries more sustainable in the long term.