What drives sustainable development? Evaluating the role of oil and coal resources for selected resource rich economies

Abstract

The goal of this study is to determine the link between the availability of natural resources, the use of renewable energy, and NRE in the economic development of five selected nations from 1990 to 2020: the United States, China, Canada, Brazil, and India. For stationarity and cointegration studies, this study employs the cross-sectionally enhanced dickey fuller test and Westerlund's (2007) cointegration approach, adopting the CS-ARDL model for the chosen variables on economic development of the chosen nations. The CS-ARDL model was used to derive the empirical results, which show that consumption of FFC and carbon emissions both speed up economic growth in the short and long terms. However, this study also found that for all the chosen countries, the impact of these two factors is greater in the long term than in the short term. While NRE sources like coal and oil rent have a detrimental impact on economic growth, the same is true with REC. One might infer from the outcomes of this study that the resource curse concept affects both industrialised and developing nations. Whereas excessive rents and resource consumption necessitate the discovery of additional natural resources to meet rising consumer demand. However, meeting the high demand for nonrenewable or REC sources proves to be both a short-term and long-term burden for the economic growth of these particular countries.