Natural resources, cleaner electricity production and economic performance

Abstract

In the era of modernization, the issue concerning the nexus between natural resources, renewable energy production and economic performance is still unresolved. To solve the enigma, this research analyzes the influence of natural resources, renewable electricity production, access to clean energy and technology on the economic performance of the BRICS economies. Evaluating the data from 1990 to 2021, this study observed the validity of the long-run cointegration between the variables. Due to the non-normal data distribution, this study employed a non-parametric estimator and concluded that natural resources have an asymmetric influence on the region's economic performance. Where coal rents have a mixed impact on economic performance, while natural gas rents promote economic performance. On the other hand, electricity production from renewable sources positively affects the economic performance of the countries under consideration. At the same time, access to clean energy and technology harms the region's economic performance. The results are robust and consistent, as verified by the bootstrap quantile regression. Based on the results, this study suggests appropriate policy implications for attaining sustainable regional economic performance.