Mineral Rents Research Articles

Assessment of the relationship between mineral extraction in the southern hemisphere and sustainable development

Sustainable mineral policies are needed to achieve environmental and social equity in the global South. This study explores the need to align mineral mining in the global South with the United Nations Sustainable Development Goals (SDGs). It studies the impact of mineral mining on sustainability in 29 global South economies from 2000 to 2021. It also conducts robustness analysis and heterogeneity tests to analyze the mediation effect and the impact of the release of SDGs on sustainability. The main conclusions are as follows: (1) Mineral mining has an inhibitory effect on sustainable development and has become a constraint for the achievement of sustainable development goals in the global South; (2) The more mineral-rich a country is, the more serious the adverse impact of mining activities is. The harm of mineral mining to sustainable development is most serious in Africa; (3) Mineral mining leads to an increase in ecological footprint and undermines environmental sustainability, while mineral rents may become a source of funds for clean production, offsetting the adverse effects of mineral mining; (4) The release of SDGs has prompted leaders of various countries to legislate and reform in the field of minerals, helping countries achieve sustainable development goals. The research results provide an effective reference for promoting environmental and social sustainable development in the global South.

The impact of ICT goods exports and environmental technology innovation on mineral rents: Evidence from OECD countries.

This study investigates the effects of Information and Communication Technology (ICT) goods exports and environmental technology innovation (ETI) on mineral rents using a panel dataset of 23 OECD countries from 2000 to 2020. Employing a fixed-effects regression and several robustness checks (FGLS, PCSE, and DKSE), we find that ICT goods exports are positively associated with mineral rents, while ETI exerts a negative impact. Notably, the positive effect of ICT goods exports was more pronounced in countries with higher levels of ICT goods exports. Our findings underscore the complex interplay among technological advancements, environmental sustainability, and economic outcomes in resource-dependent economies, emphasizing the need for tailored policy interventions to navigate these multifaceted dynamics.

Natural resources, a curse or blessing for international trade? Empirical evidence from CAREC nations

AbstractThere is a huge pile of literature, accessible on economic growth (GDP), natural resource rents (NR), mineral rents (MR), natural gas rents (GR), oil rents (OR), and forest rents (FR) but it does not address the association between trade openness (TO) and the availability of these resources. Thus, this study objectively probes the link among these resources and TO in CAREC nations (Georgia, China, Pakistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan) from 2000 to 2022. Mongolia, Afghanistan, and Tajikistan from CAREC countries are exempted in this inquiry due to unavailability of the data for the variables, GR, MR, and OR. The key methods used in this inquiry include method of moment quantile regression (MMQR) followed by Westerlund analysis, slope heterogeneity, CIPS unit root test, cross‐sectional dependence (CSD), and matrix correlation. The MMQR yields valid, trustworthy, and robust results. The empirical estimates demonstrate that MR and OR suggest significant positive impacts on TO. However, NR, GR, FR, and GDP have negative association with TO in CAREC countries. Besides, the research offers pertinent theoretical, and managerial blueprint proposals for global commerce by utilizing MR, OR, FR, and NR contributing to sustainable development goals (SDGs) by fostering economic development, promoting sustainable development, and addressing environmental and social challenges, and highlighting the real impact and association of these resources with TO based on empirical aftermath of the study.

Nexus between mineral rents and environmental sustainability: The role of economic policy uncertainty

Nexus between mineral rents and environmental sustainability: The role of economic policy uncertainty

Mineral resources and equitable economic development: South Asian mineral resources policy perspective with innovation for resources efficiency

In the contemporary era, economies are heavily relying on minerals extraction, where the literature offers ambiguous evidence regarding minerals-growth nexus. To solve the puzzle, this research inspects the empirical association between mineral resources and economic prosperity in the South Asian nations from 1988 to 2022. This study also scrutinizes the importance of financial development, remittances, renewable energy use, and technological innovation. The research utilizes a panel dataset and applies the normality, stationarity, and cointegration tests. The results validates non-normal data distribution, stationarity of variables, and existence of long-run equilibrium association between them. To tackle non-normality and structural break issues, panel quantile regression and structural break ordinary least squares (OLS), are used. The study's results emphasize that mineral rents and remittances harm economic growth, indicating the poor outcomes associated with excessive dependence on external sources income. On the other hand, the factors identified as key drivers of sustainable economic expansion include financial progress, the use of green energy, and technical innovation. The results are tested for robustness via dynamic OLS, fully modified OLS, and canonical cointegration regression. This research recommends the significance of diversified revenue sources, fostering financial expansion, and making investments in renewable energy systems. To create more equitable growth, policymakers must focus on improved R&D and financial inclusion.

Resources policy from extraction to innovation: The interplay of minerals, geothermal energy, technological advancements, and ecological footprint in high-ecological footprint economies

The present study aims to examine the impact of minerals, geothermal energy, and technology on the ecological footprint within the top five countries exhibiting the highest ecological footprint. In particular, the study utilizes a panel dataset covering China, the US, India, Brazil, and Japan, spanning the years 1998–2022. The empirical findings indicate that the minerals increase the ecological footprint in the long run. Contrarily, both geothermal energy and technology have the potential to mitigate the ecological footprint in the long run. The aforementioned findings indicate the necessity of reconfiguring the utilization of mineral rent in a manner that enables the revenue derived from minerals to effectively alleviate the ecological footprint. Moreover, it is advisable to formulate strategies aimed at augmenting the utilization of geothermal energy. To plunge the ecological footprint, it is imperative to implement policies that incentivize and facilitate the development and adoption of technological innovations. Overall, the current research suggests that the governments in these sample countries with the highest ecological footprint should formulate policies to effectively manage minerals, promote geothermal energy, and enhance technology innovation for effective utilization of resources.

Driving sustainable development: Role of institutional quality and future of China's mineral resource management projects

The rapid industrial progress in China along with significant dependence on minerals, raises concerns about the influence of its overall reliance on nations’ development trajectory. Moreover, institutional quality also plays an active role in shaping the economic structure of any nation. The study investigates the intricate association among mineral extraction, institutional quality, and economic development in China from 1990 to 2022. For an empirical investigation, the ARDL (Autoregressive distributed lag) co-integration method is employed based on the order of integration of the series defined by the ADF(Augmented Dickey-Fuller) stationarity test. Moreover, CUSUM and CUSUM square (Cumulative sum of square) also confirm the stability of the model. According to the findings mineral rent and mineral exports are found to be positively significant in the short and the long run and increase economic growth. While institutional quality is shown to be positively insignificant in the short term, in the long run, it is shown to have a positive significant effect. Moreover, inflation and population growth are shown to have a positive significant impact in the short term, but trade is found to be insignificant. Lastly, the study intends to suggest policy suggestions based on the results. A country should have a strong institutional setup to ensure sustainable long-term growth.

Mineral resources policy with economic risk: Envisaging the role of mineral resources with inclusive financial development for the US economy

While previous research has thoroughly examined the influence of natural resources and economic growth on a global scale, there is a noticeable gap in the literature regarding analyzing the impact of mineral rents. This gap is significant and warrants attention due to mineral rents crucial role in renewable energy projects, its contribution to the promotion of mining activities, and its potential to influence regional stability. Hence, unlike previous studies, this research investigates the nexus of mineral rents and economic growth in the USA from 1984 to 2022. The research also incorporates the role of economic risk, financial development index, renewable energy consumption, and technological innovation. This research used time series methods encompass relevant parametric approaches, i.e., Fully modified OLS, Dynamic OLS and canonical cointegration regression for the unit root specifications in the data. For robustness, simple OLS with break years and robust OLS are deployed in the research to evaluate the robustness of estimated findings. The empirical outcomes assert that long-run equilibrium exists between economic progression and all its co-variates across models. The outcomes of linear and non-linear procedures based on the long-run association and quantile-based approach disclose that mineral rents established a resource curse hypothesis for economic growth. The increase in mineral rents by 1% causes a decrease in economic growth by -0.026% and -0.014% across all methods. Moreover, financial development index, renewable energy consumption, and technological innovation are found to induce economic progression in the long run. However, in contrast, economic risk is determined to decrease economic progression, but its outcomes are found to be insignificant in the long run across quantiles. The outcomes of robustness procedures provide a better understanding of supporting the main estimations through logical findings. In terms of policy implications, the research recommends channeling mineral resources to influence the real segments of the economy, i.e., economic progression. Moreover, the research encourages the promotion of multilevel financial development, renewable energy, and technological innovation to benefit from its influence on expanding sustainable economic progression.

Are Natural Resources Harmful to the Ecology? Fresh Insights from Middle East and North African Resource-Abundant Countries

The Middle East and North African (MENA) region is among the regions most impacted by global warming and climate change. At the same time, the region accounts for 58% of global oil reserves and 43% of global natural gas reserves. It is, therefore, important to assess the role of natural resource abundance in the environmental degradation faced by MENA resource-abundant countries. This study contributes to this research area by exploring the short- and long-term repercussions of natural resources on the ecological footprint (EFP) of eight resource-rich MENA countries between 2000 and 2021. The research performs both aggregate and disaggregate assessments by considering the total resource rents, as well as specific rents of oil, natural gas, and minerals. The pooled mean group estimator indicates that a rise of 1% in total natural resources induces an increase of 0.053% in the EFP, implying that natural resources are harmful to the environment. The disaggregate analysis shows that oil rents have the most adverse environmental effects in the long run, followed by natural gas. Finally, mineral rents are determined to be neutral vis-à-vis the environment. In light of these findings, policy recommendations for reducing the adverse environmental impacts of natural resources are suggested.

From black to green: Quantifying the impact of economic growth, resource management, and green technologies on CO2 emissions

In an exploration of environmental concerns, this groundbreaking research delves into the relationship between GDP per capita, coal rents, forest rents, mineral rents, oil rents, natural gas rents, fossil fuels, renewables, environmental tax and environment-related technologies on CO2 emissions in 30 highly emitting countries from 1995 to 2021 using instrumental-variables regression Two-Stage least squares (IV-2SLS) regression and two-step system generalized method of moments (GMM) estimates. Our results indicate a significant positive relationship between economic growth and CO2 emissions across all quantiles, showcasing an EKC with diminishing marginal effects. Coal rents exhibit a statistically significant negative relationship with emissions, particularly in higher quantiles, and mineral rents show a negative association with CO2 emissions in lower and middle quantiles, reinforcing the idea of resource management in emissions reduction. Fossil fuels exert a considerable adverse impact on emissions, with a rising effect in progressive quantiles. Conversely, renewable energy significantly curtails CO2 emissions, with higher impacts in lower quantiles. Environmental tax also mitigates CO2 emissions. Environment-related technologies play a pivotal role in emission reduction, particularly in lower and middle quantiles, emphasizing the need for innovative solutions. These findings provide valuable insights for policymakers, highlighting the importance of tailoring interventions to different emission levels and leveraging diverse strategies for sustainable development.

Non‐linear nexus of mineral rents, coal rents, foreign direct investment, and environmental sustainability: Importance of institutional quality in E‐7 nations

AbstractThis study investigates the impact of natural resources (NRs), economic growth (GDP), institutional quality, mining and coal rents, and foreign direct investment (FDI) on the environmental quality in the E‐7 countries (Brazil, China, India, Indonesia, Russia, Turkey, and Mexico) from 1990 to 2021. To do this, such advanced estimation methods are used as the method of moments quantile regression (MMQR), with the artificial neural network utilized for robustness checks. The initial diagnostic test results unveiled the presence of cross‐sectional dependence, slope heterogeneity, and long‐run cointegration. The MMQR analysis results indicate that coal and mineral rents escalate environmental pollution by reducing the load capacity factor (LCF) across all quantiles. The results further indicate that FDI and economic growth negatively affect while institutional quality (INS) significantly promotes the LCF in E‐7 countries. Moreover, INS significantly moderates the relationship between mineral resources and LCF, as well as coal resources and LCF. The robustness test also validates these findings. Based on these results, policy measures aimed at strengthening institutional quality, particularly within the NR sector, are crucial for mitigating the adverse impacts of coal and mineral extraction on LCF and promoting sustainable development in the E‐7 countries.

Nexus between total natural resource rents and public debt within symmetric and asymmetric framework: Fresh insight from resource-rich economy

Many economies abundant in natural resources often leverage the rents from these resources as collateral for borrowing during periods of economic boom, intending to repay debts during periods of windfall. However, this practice can cultivate irresponsible borrowing tendencies, potentially leading to debt trap scenarios when global resource prices decline. Thus, our study delves into the interaction between public debt (PD) and total natural resource rents (TNR), examining both aggregate and disaggregate forms, with a specific focus on India spanning from 1980-81 to 2021–22.Our aggregate analysis reveals that PD exhibits heightened responsiveness to negative shocks in TNR compared to positive shocks, indicating an asymmetric impact of TNR on PD within the Indian context. Additionally, disaggregate analysis uncovers that both positive and negative shocks in coal rents (CR), natural gas rents (NGR), and forest rents (FR) significantly and adversely affect PD. Furthermore, a positive shock in mineral rents (MR) demonstrates a negative and significant impact on PD, while a negative shock in MR yields a positive but insignificant impact on PD. Overall, barring oil rents (OR), other forms of resource rents such as CR, NGR, FR, and MR showcase asymmetric and negative effects on PD. These findings underscore the importance of prudent institutional behavior and sound economic policies in overseeing and managing debt sustainability in resource-rich economies.

How effective are green innovations as a remedy for mineral resource scarcity in the European region?

The relationship between environmental externalities and green innovation is being increasingly explored in the literature but there is no paper exploring the nexus between green innovation (GI) and sustainable development. This article sheds light on the connection between GI and mineral rents from 2007 to 2021. In order to verify our results, we conduct a robustness assessment using a variety of natural resource rents, encompassing coal rents, gas rents, and forest rents. Our research furnishes evidence indicating that the adoption of environmental innovation is poised to curtail the consumption of most mineral resources, with the exception of forest rents in the PCSE and FGLS estimates. While GI does not exhibit statistical significance in the short term, its long-term impact reduce reliance on mineral rents. These findings maintain their robustness and reliability when accounting for endogeneity, fixed effects, and heterogeneity. To illuminate the relationship between institutional quality and mineral rents (MR), we incorporate six different indicators of institutions: voice and accountability (VA), government effectiveness (GE), rule of law (RL), regulatory quality (RQ), political stability and absence of violence/terrorism (PV), and control of corruption (CC). Our findings underscore the fact that integrating GI with institutions diminishes activities associated with mineral rents; from this we provide important policy recommendations for promoting GI development to use mineral resources more efficiently.

Exploring how economic growth, renewable energy, internet usage, and mineral rents influence CO2 emissions: A panel quantile regression analysis for 27 OECD countries

This study aims to investigate the impacts of renewable energy consumption, internet usage, mineral rent, and economic growth on CO2 emissions across 27 OECD nations between 2001 and 2020. We employ a panel quantile regression technique to discover the heterogeneous effects of these variables for the various quantile levels of environmental destruction. The panel quantile regression approach found the Environmental Kuznets curve dominated countries in which CO2 emissions were low. Additionally, the negative relationship between renewable energy consumption and CO2 emissions yielded in the paper suggests the potential benefits of incentivizing and investing in renewable sources. Internet usage demonstrates a negative impact on CO2 emissions, showcasing the role of digital technologies in promoting sustainability. Accordingly, internet use improves environmental quality due to more efficient, sustainable, and eco-friendly practices, which increase productivity. However, a positive association between mineral rents and environmental deterioration emphasizes the necessity of strategic policies to balance economic benefits with environmental preservation. Our study provides policymakers with valuable insights into tailoring effective strategies for sustainable development, renewable energy adoption, digitalization, and natural resource utilization while addressing environmental degradation.

Role of mineral-based industrialization in promoting economic growth: Implications for achieving environmental sustainability through financial management

Industrialization based on mineral resources has historically been pivotal in driving many countries' economic development and growth. This study emphasizes the need to understand the intricate link between mineral-driven economic development and ecological responsibility. The present study utilized annual data from 1990 to 2022 and employed the Johanson approach to experimentally evaluate the impact of mineral-based industrialization on economic growth in the context of Canada. Johnson Cointegration analysis and the dynamic error corrections model confirmed long-run and short-run relationships among economic growth, and other independent variables (financial management, technological innovation, energy use, mineral rent, abundance of natural resources). In the long run abundance of natural resources shows a negative impact on economic growth by (−0.02) highlighting the validation of the environmental resource curse hypothesis. The coefficient of financial management indicates 1% increase in financial management will result in an improvement in economic growth of 0.11%. Mineral rent shows a positive and significant relationship with economic growth. Moreover, estimates of technological advancement show that a 1% increase in technological advancement will result in economic growth of 1.12%. The study further suggests that policymakers should diversify the economy by investing in the non-mineral sector and promoting innovation to reduce reliance on resource-dependent revenue. Lastly, funds must be allocated to educational and training initiatives to provide local laborers with the cutting-edge expertise required for mineral processing.

The role of trade openness and labour productivity on mineral rents: evidence from East Asian countries

ABSTRACT This study examined the sustainability of East Asian countries’ extended reliance on mineral resource exports and foreign investment inflows for economic growth. By analysing panel data from 11 East Asian nations from 2000 to 2020, the research examined the impacts of trade openness and labour productivity on mineral resource rents. The findings showed that increasing trade liberalization and improving labour productivity negatively impact mineral rents. The research suggests that optimizing trade, productivity, industrial upgrading, and regional partnerships can help East Asian nations diversify their economies, move up global value chains, and achieve high-quality, long-term growth.

An exploration of linkage between green logistics and natural rents: Evidence from the global database

This article represents the inaugural effort to establish a connection between green logistics and natural rents within the European region. In order to gauge natural rents accurately, we employ five distinct metrics, encompassing mineral rents, coal rents, forest rents, gas rents, and overall natural rents. Our research furnishes evidence indicating that the adoption of green logistics (GL) is poised to curtail the consumption of most natural resources, with the exception of coal. While GL does not exhibit statistical significance in the short term, it has a negative influence in the long term, reducing reliance on natural rents. To illuminate the relationship between institutional quality and natural rents, we incorporate six different indicators of institutions: accountability and voice, absence of violence/terrorism, political stability, government effectiveness, rule of law, regulatory quality, and control of corruption. Our findings underscore that integrating green logistics with institutions serves to diminish activities associated with natural rents. Additionally, with time, it is anticipated that the tangible effects of green logistics will become more apparent. These results hold up well when endogeneity, fixed effects, and heterogeneity are taken into account.

Modeling the influence of mineral rents and low‐carbon energy on environmental quality: New insights from a sustainability perspective

AbstractIn recent decades, the detrimental impacts of climate change have been increasingly felt worldwide. This is due to the extreme consumption of natural resources to fuel economic activity. Confronting a widening ecological deficit, humanity must urgently accelerate its journey toward sustainable development goals (SDGs). This demands active efforts to curb environmental pollution and protect natural resources, safeguarding the planet for future generations. Since Brazil has high biocapacity and ecological areas, the impact of energy resources on ecological sustainability policies cannot be excluded. Moreover, Brazil holds a vital position in the world for global foreign direct investment flows. In this regard, this paper considers the asymmetric impact of mineral rents and foreign direct investments when investigating Brazil's environmental sustainability. In addition, it evaluates elements like economic growth and low‐carbon energy consumption from 1970 to 2021. To this end, the research applies the Fourier nonlinear autoregressive distributed lag model and draws three significant conclusions. First, resource extraction undermines environmental sustainability. Second, the inflow of foreign direct investment reduces the load capacity factor, implying that the pollution haven hypothesis holds for Brazil. Third, low‐carbon energy consumption contributes to environmental sustainability. Our findings highlight the critical role of regulating mineral resource rents in achieving SDGs in Brazil. Moreover, increasing investment in clean energy sources and transitioning toward low‐carbon energy can promote sustainable development in Brazil. The Brazilian government should abandon mineral extraction, focus on low‐carbon energy consumption, and prevent companies from destroying nature by introducing strict environmental regulations for foreign investment flows.

Mineral resources and intellectual capital: Asymmetrical impacts and sustainable development outcomes

The existence and use of natural resources, and the impact that they have on sustainable development is a topic that has received significant attention, with a particular focus on the “resource curse hypothesis.” However, there is limited research that explores the combined role of natural resources and human capital, specifically when it comes to the realm of endogenous sustainable development. This study, therefore, takes into account this research gap, and investigates the interrelationship between natural resources, human capital, and sustainable development, specifically in the context of China. By conducting an advanced econometric analysis, we have examined the influence of oil rents, forest rents, and mineral rents on China's economic growth from the years spanning from 1992 to 2022, while considering the control variables such as foreign direct investment (FDI) and research and development (R&D) expenditures. Our findings have revealed an asymmetric impact of mineral rents and oil rents on economic growth, while forest rents have shown a positive and considerable influence as well. This essentially indicates the presence of beneficial effects from forest resources. Moreover, we have also observed a positive association between human capital and economic expansion. in addition to this, expenditures such as those pertaining to FDI and R&D are shown to stimulate economic growth in China. Furthermore, this study also finds bi-directional causality between oil rents, FDI, and human capital, while forest rents, mineral rents, and R&D expenditures show an uni-directional causal relationship with economic growth in China. Our study contributes towards the understanding of the complex dynamics that exist between natural resources, human capital, and sustainable development in China. These findings have policy implications for sustainable development through resource management, human capital development, and technological innovation.

The Relationship between Natural Resource Abundance and Human Development in Belt and Road Initiative Countries: The Role of Financial Development

The goal of this study is to explore the relationship between natural resource abundance and human development. In particular, account for the role of financial development. This study uses data from 51 BRI countries over the period 2000-2018. Concerning the HDI, the results suggest U-shaped relationship between total natural resource rents and HDI. Similarly, gas rents, mineral rents and oil rents are non-linearly related to HDI in BRI countries. For example, in the case of total rents, once its share in GDP exceeds 42.8%, further dependence on natural resources leads to increase in HDI. In our sample, only Iraq, Kuwait, Saudi Arabia and Oman were above the turning points at some observation years. The interaction term is positive and significant. This implies that increase in natural resource rents in countries with higher levels of financial development does not lead to a reduction of human development. In a similar vein, domestic credit to private sector alleviates negative effect of oil and mineral rents.