Unleashing the asymmetric effect of natural resources abundance on carbon emissions in regional comprehensive economic partnership: What role do economic globalization and disaggregating energy play?

Abstract

The ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement has laid the foundation for member states to accelerate their individual economic growth rates while also addressing sustainability concerns. However, there is limited documentation on the impact of economic globalization and natural resource abundance on decarbonization efforts within the RCEP nations. Therefore, this study aims to investigate the influence of disaggregated energy sources, economic globalization, natural resources, and economic growth on carbon emissions in the RCEP nations from 1990 to 2020. To achieve this, we employ various econometric approaches, including cointegration analysis, quantile regression to account for conditional heterogeneity, and panel Granger causality tests. The findings of this research provide valuable insights for policymakers. Specifically, the empirical evidence indicates that economic growth, natural resource availability, and non-renewable energy sources contribute to increased CO2 emissions, leading to environmental degradation in RCEP nations. On the other hand, the use of renewable energy and economic globalization enable RCEP nations to reduce their CO2 emissions, highlighting the importance of renewable energy in reducing dependence on hydrocarbons and enhancing environmental sustainability. To support green initiatives, it is crucial to strengthen and implement robust environmental policies within the RCEP nations.