Natural resources and energy resources prices an answer to energy insecurity? The role of mineral, forest, coal resources and financial development

Abstract

Natural resources can be both a true blessing as well as a curse relying on its use. Using panel data for G7 economies from 1990 to 2021, this study aims to explore the influence of energy price shocks on energy security. This research applied the method of moment quantile regression to analyze the long-term link between study variables. The long-run method of moment quantile regression test results shows that energy price shock decreases energy security. Environmental innovation, renewable energy R&D, financial development, and low economic risk increase energy security in selected economies. No study has examined energy price shocks and energy security in the G7 economies using the method of moment quantile regression model and additional control variables. Additionally, natural resources in the form of coal, mineral, and forest rents increase energy insecurity. This research suggests some measures to do to boost energy security and stable energy prices in G7 economies. In terms of implications for policymakers, the role of natural resources is vital for a broader perspective of sustainable development goals.