Mineral Rents Research Articles

Incidence of Energy Consumption, Mining Sector and Economic Growth on CO2 Emission Levels: Evidence from Peru

Environmental pollution and its harmful effects have become a growing topic of study in recent years because the exploitation of resources, rationalized by the prevailing desire for economic growth, is going to directly affect the sustainability of our existing ecosystem in the coming decades. This is considering that there are productive sectors that have a larger environmental footprint, such as the mining industry. This study focuses on establishing the relationship between the variables of energy consumption, GDP per capita, and mineral rents and their impact on the level of pollution by CO2 emissions in the period 1971–2019, using the Environmental Kuznets Curve (EKC) theory. To this end, we used statistical and econometric tools based on the ARDL dynamic model through a time series analysis starting from historical data. We concluded that the variables CEpc, PBIpc, and RM have deleterious effects as a 1% increase in these variables increases the level of environmental pollution by CO2 emissions by 0.724%, 0.136%, and 0.061%, respectively.

Strategic resource management for economic sustainability: Assessing the impact of technological advancement and energy efficiency

In the last two decades, numerous empirical studies have been done exploring the relationship between natural resources and economic growth. Still, the contradictory findings lead the policymakers and governments to adopt inadequate and inappropriate policies for sustainable development. Following the trend, the present study examines the nexus of natural resources and trade with the economic performance of the top global economies during 1988–2021. Using the second and third-generation econometric approaches, this study found the validity of the long-run equilibrium relationship between mineral rents, trade, oil rents, and economic performance. This study employs the cross-section augmented autoregressive distributed lag estimator and concludes that natural resources are adversely affecting the economic performance of the region. However, trade has a beneficial impact on the economic performance. The results are found robust, where energy efficiency and technological advancement are progressively influencing economic performance. This study suggests resource management and improved trade policies to attain economic sustainability.

The resource curse in least developed countries: The roles of foreign direct investment, energy efficiency, and electricity access

Extensive research exists on the link between natural resource rents and GDP growth, yet the roles of Foreign Direct Investment (FDI) and energy efficiency are less studied. As such, this study aims to bridge this research gap by investigating the relationship among natural resource rents, FDI, and GDP growth in the context of the Least Developed Countries (LDCs). In addition, the potential influences of energy efficiency and electricity access are considered. Using time-series methodologies like the Augmented Dickey-Fuller (ADF) unit root test with structural breaks, Bayer-Hanck Cointegration, and regression methods such as FMOLS, DOLS, and CCR, the study explores the defined variables. Robustness checks are conducted using Robust and Simple Least Squares without breaks. The results reveal that most variables, barring mineral rents and long-run cointegration between growth and explanatory variables, are stationary at first difference D(1). Findings show that LDCs are susceptible to the resource curse, with forest and mineral rents and FDI negatively impacting economic growth. However, enhanced energy efficiency and electricity access can foster sustained growth in LDCs. The robustness check results corroborate the primary findings. The study concludes by proposing policy recommendations for sustainable resource use, regulation of FDI, and improving energy efficiency and electricity access.

Mineral rents, natural resources depletion, and ecological footprint nexus in high emitting countries: Panel GLM analysis

Natural resource depletion is a serious problem facing many countries today. As minerals and other natural resources are extracted from the ground, they are not replaced, leading to biodiversity loss and environmental degradation. The problem of natural resource depletion is compounded by the fact that, in many cases, mineral rents are not used to help replenish the resources being taken out of the ground. This study examines the impact of mineral rents and natural resources depletion on the ecological footprint in the high emitting countries from 1973 to 2019, using general government final consumption expenditure and international trade as moderating variables. Mineral rent and international trade are negatively associated with the ecological footprint. In contrast, general government final consumption expenditure and natural resource depletion are positively associated with an ecological footprint in the top emitting countries. Government expenditure and natural resource depletion deteriorate the environment, while mineral rents and exports of goods and services improve the environment. By investing in green technologies, the highest-emitting countries can reduce their ecological footprint and increase sustainability. In conclusion, the policy implications for mineral rents are clear – reducing the ecological footprint of the highest-emitting countries. By levying mineral rents, governments can ensure that companies pay their fair share for the resources they extract and raise revenue to fund environmental protection and renewable energy projects. This will help to reduce emissions and improve air quality, making the highest-emitting countries more sustainable in the long term.

Fin-tech indicators, mineral resources and green productivity: Role of human development and globalization in BRICS region

Fin-tech facilitates capital allocation for sustainable mineral extraction, fostering green productivity. Fin-tech platforms empower communities to invest in renewable, driving eco-friendly practices in mineral-rich areas. Despite its significant importance, the influence of fin-tech and mineral resources is relatively under-explored, particularly in the BRICS region, mainly due to the unavailability of inclusive fintech indicators. This study initially constructs fintech index based on financial development and digitalization indicators. Although it does not purely reflect fintech, however, it is a good proxy for the readiness of fintech. Later, this study explores the nonlinear dynamics of fintech and mineral resources after controlling the impact of human development and globalisation on the green productivity of the BRICS countries from 1990 to 2021. Nonlinear Autoregressive Distributed Lag (NARDL) model is employed after the preliminary examination of the data series. The bound test of the cointegration approach is used to establish the long-run equilibrium relationship between the variables. Wald test affirms the asymmetries/non-linearities in financial technology and mineral resources. The long-run outcomes of NARDL reveal positive and negative shocks in financial technology and mineral resources cause to influence green productivity differently. Positive shock in fin-tech (mineral rent) leads to a 0.251% (0.437) increase (decreased) in green productivity, while negative shows a reduction (increases) by 0.308% (114%). Human development and globalisation positively impact green productivity in the long and short run. The error correction term is negative and significant, implying that the applied model settles 46.1% of asymmetric discrepancies annually. The study emphasises enhancing the financial technology sector in the BRICS countries.

Resources extraction and access to clean energy a curse or blessing for the economy? Middle-income economies case study

The study evaluates the long-lasting and debatable issue of the resource-growth nexus, which unearths whether natural resources have a curse or blessing on economic growth. Hence, this research revisits the nexus of natural resources and economic growth in middle-income economies with more relevant and effective variables: energy efficiency and access to clean fuel technology from 1988 to 2021. The study leveraged various time series methods, including the ADF-GLS stationary analysis to govern the stationary sequence and the Bayer-Hanck cointegration test for long-term cointegration. The primary methods include FMOLS, DOLS, and CCR, which reveal long-term elasticities between dependent and independent variables. Both non-parametric quantile and parametric robust regression are used for robustness checks. The results reveal that time series were found static D (1) and long-term cointegration occurs between economic growth and its regressors: mineral rents, natural gas rents, energy efficiency, and access to clean fuel technology. The empirical findings exhibit that natural gas and mineral rents show an encouraging influence on the economy's growth in middle-income economies, confirming the blessings of these resources. Moreover, energy efficiency and access to clean fuel technology allow effective use of natural resource rents and endorse supportable economic growth. The robustness check scrutiny confirms the results via robust regression, while the robustness test of quantile regression displays asymmetries in the mineral rents and natural gas rents across quantiles. These results indicate several policy implications to policymakers regarding the use of energy efficiency and access to clean fuel technologies should be increased and encouraged to allow the effective use of natural resources for sustainable expansion of the economy.

An exploration of linkage between climate-related financial policies and natural rents: Evidence from the global database

In this article, we attempt to link climate-related financial policies to natural rents around the world. The study employs five distinct measures, namely natural rents, coal rents, mineral rents, gas rents, and forest rents, to reflect the diverse aspects of natural resource rents. Utilizing various econometric techniques, such as the panel-corrected standard errors (PCSE) model, feasible generalized least square estimates (FGLS) model, and the two-step General Method of Moment (the two-step GMM), a substantial reduction in the significance of natural rents has been associated with climate-related financial policies. The findings illustrate varied outcomes and influences of these policies on different categories of natural rents. Additionally, by using a dynamic fixed effect in an autoregressive distributed lag (ARDL) approach, the study suggests that the effects of climate-related financial policies are more prominent in the long run. The results are found to be robust and reliable, considering factors such as heterogeneity, fixed effects, and endogeneity. Notably, the effectiveness of climate policies is observed to be more pronounced in countries with well-developed institutions. This research examines the complexities and consequences of climate-related financial policies on natural rents, providing valuable insights for policymakers and researchers alike.

Exploring economic development and mineral rents nexus across BRICS nations: Fresh insights from multiple threshold panel analysis

The nexus between economic development and mineral rent across Brazil, Russia, India, China, and South Africa (BRICS) is empirically tested by using multiple threshold panel analysis. This paper focuses on the association and correlation among Mineral Rents (% of GDP) and Gross Domestic Product per capita along with Foreign Direct Investment (FDI), Trade, and Renewable Energy Consumption per Capita, by using the data sets for the period 1994–2021. Dynamic Liner Model and Double Threshold models are used for empirical testing of the above variables. The Dynamic Liner Model identified the positive influence of trade and FDI on mineral rent; and the Double Threshold models identified the negative influence of GDP, trade, and FDI on mineral rent. The findings contribute to the literature about mineral rent and economic growth. Moreover, the findings of this paper help in planning policies and interventions for inclusive and sustainable economic development, GDP enhancement, promotion of trade, and FDI in Brazil, Russia, India, China, and South Africa (BRICS) by considering mineral rent management. This paper also recommends considering the mineral rent taxation, mineral royalty, mine-community conflicts, corruption, institutional development, politics, and environmental issues before policy implementation and reforms related to economic development, GDP enhancement, promotion of trade, and FDI in BRICS.

An assessment of the aggregated and disaggregated effects of natural resources rents on environmental sustainability in BRICS economies

ABSTRACT This study seeks to investigate how natural resources rents impact environmental sustainability measured by CO2 emissions and PM2.5 air pollution in Brazil, Russia, India, China, and South Africa (BRICS) economies from 1995 to 2019. To enhance robust policy implications, natural resources are decomposed into disaggregated (coal, gas, oil, forest, and mineral rents) and aggregated (total natural resources rents) indicators. Besides, the intervening roles of affluence, urbanization, and green policies vectoring green technological innovation, green finance, green energy, and waste management within the theoretical underpinning of STIRPAT model are considered. The empirical verification is anchored on second-generation estimators entailing Common Correlated Effects Mean Group, Augmented Mean Group, and Panel Quantile Regression. Similarly, Fully Modified OLS is employed to gauge the country-specific effects amidst varying robustness analyses. The fallouts from the analyses reveal that natural resources rents inhibit the attainments of environmental sustainability in BRICS economies by positively driving CO2 emissions and PM2.5 air pollution. Conversely, green policies are observed to substantially drive environmental sustainability by mitigating both pollutants whereas affluence and urbanization escalate them. The distributional effects from Panel Quantile Regression and Fully Modified OLS corroborate the main findings divergently. Additionally, two channels of causality, including unidirectional and bidirectional nexuses, are apparent from the estimated models. Policy measures are suggested based on the empirical findings.

Resources abundant economies and sustainability of economic growth: A novel panel evidence of high resources economies

In the contemporary era, where some countries are in the transition stage for attaining a sustainable environmental and economy, several economies worldwide are still resources dependent due to abundant natural resources. This study examines the influence of natural resources' components on the financial system's sustainability in resources abundant economies during 1989–2021. Second-generation panel techniques are utilized for empirical examination, revealing the long-run cointegration between the study variables. Following the non-normality characteristic of the data, this study uses the novel non-parametric approach and found that natural resources' components heterogeneously affect financial expansion in the region. Specifically, mineral rents are playing a progressive role in developing the financial system. However, forest, oil, and natural gas rents significantly harm financial development. The empirical results depicted that economic growth significantly contributes to the countries' financial development. This study suggested revisiting policies regarding the sustainable extraction of natural resources and using higher economic growth for sustainable financial development.

Multidimensional financial development and natural resources: A path for sustainable development via natural resources and digitalization

An excess of studies are presented concerning the linkage of natural resources-economic-growth-sustainable development; however, the role of natural resources and economic expansion in multidimensional financial development is lacking, particularly in the context of the USA. This study underpins the extant literature by examining the role of natural resources and economic growth on the financial development index of the USA from 1980 to 2021. The research also encompassed digitalization as a controlling co-variates in the study. Various time series econometric procedures have been leveraged to analyze the data, which contains two-unit root tests (ADF and Phillips Perron tests) to determine the static properties of the variables before examining the long-term equilibrium (Bayer and Hanck cointegration test) between variables for the long run elasticities between variables, FMOLS, DOLS, and CCR is used. We also deployed robustness check analysis tests in the study. The outcomes of the research demonstrate asymmetric results. Mineral rents and natural gas rents significantly and positively improve financial development, while oil rents and coal rents have detrimental effects on the financial development index of the USA. In a non-parametric test of quantile regression, the results are similar, but mineral and natural gas rents are insignificant and positive. GDP and digitalization also improve the financial development index. The robustness check also validates the results of the preferred models. The causality analysis exhibits that GDP, natural resources (mineral rents, coal rents, oil rents, natural gas rents), and digitalization have bi-directional causality with the financial development index and confirm the feedback effect. Based on the observed outcomes, the study endorses pertinent policies to policymakers regarding the financial development index by taming digitization, economic expansion, and NRR.

Sustainable development: Uncovering the synergy between natural resources, clean technologies, and economic progress

This study examines the relationship between natural resource rents and economic growth in Asian economies from 1990 to 2021, considering the impact of electricity generated from renewable sources, access to clean fuel technology, and research and development expenditures. The study uses time series data and employs the Bayer-Hanck cointegration analysis to examine long-term cointegration, along with least squares with known structural breaks for the main estimates and robust least squares method for the analysis. The findings suggest that access to clean fuel technology, natural gas rents, and oil rents significantly impact economic expansion without renewable electricity, while mineral rents have insignificant results. Including electricity from renewable energy, access to clean fuel technology, oil rents, and research and development expenditures suggest a positive association with economic growth. In contrast, natural gas rents and mineral rents produce negative results. The study concludes that there is an asymmetric relationship between natural resources and economic growth in the studied Asian economies. The study highlights the importance of effectively utilizing natural resources and promoting renewable energy in Asian economies with natural resource wealth to promote economic growth.

Mineral rents, conflict, population and economic growth in selected economies: empirical focus on Sub-Saharan Africa

PurposeThis study aims to investigate the effects of mineral rents, conflict and population growth on countries' growth, with a specific interest in 13 selected economies in Sub-Saharan Africa.Design/methodology/approachThis paper uses a combination of research methods: the pooled ordinary least squares (OLS), the fixed effect and the system generalized method of moment (GMM). The consistent estimator (system GMM), which provides the paper's empirical findings, remedies the inherent endogeneity bias in the model formulation. The utilized panel dataset for the study spans from 1980 to 2022.FindingsThe study suggests that mineral rents positively affect countries' growth by about 0.407 percentage points in the short run. The study further demonstrates the long-run negative impacts of population growth rates and prevalence of civil war on economic growth. The empirical work of the study reveals that an increase in the number of international borders within the group promotes mineral conflicts, which impedes economic growth. Evidence from the specification tests performed in the study confirmed the validity of the empirical results.Social implicationsMineral rents, if well managed and conditioned on good institutions, are a blessing to an economy, contrary to the assumptions that mineral resources are a curse. The utilization of mineral rents in Sub-Saharan Africa for economic growth depends on several factors, notably the level of mineral conflicts, population growth rates, institutional factors and the ability to contain civil war, among others.Originality/valueThis study is the first attempt in the post-coronavirus disease 2019 (COVID-19) era to revisit the investigation of the impacts of mineral rents, conflict and population growth rates on the countries' growth while controlling for the potential implications of the qualities of institutions. One of the significant contributions of the study is the identification of high population growth rates as one of the primary drivers of mineral conflicts that impede economic growth in the states with enormous mineral deposits in Sub-Saharan Africa. The crucial inference drawn from the study is that mineral rents positively impact countries' growth, even with inherent institutional challenges, although the results could be better with good institutions.

MINERAL RENTS IN ARMENIA

The authors proposed a method for calculating mineral rents at the industry level and calculated mineral rents in the metal ore mining industry in Armenia for the period 2018-2022. We have revealed that the highest value of mineral rents was recorded in 2021, which is due to an increase in prices of the main raw materials that Armenia exports, despite a decrease in physical export volumes. The average value of the ratio of mineral rents to GDP for the same period ranged from 0.61% to 1.37%, and this ratio reached its maximum value in 2021. We come to the conclusion that mineral rents mainly reflect the global volatility of commodity prices, which affects the value of mineral rents, which means that Armenia needs a progressive royalty calculation system to eliminate price volatility and ensure additional budget revenues. We also come to the conclusion that the new hybrid royalty system, which entered into force on January 1, 2023, may be acceptable for the industry in terms of the fact that it will not be considered a heavy burden when prices rise on the world market based on the coefficients calculated by us.

Towards resourceful sustainability: Integrating minerals resources in achieving development goals

Amid growing concerns over the sustainability of resource-driven economies, understanding the specific roles of diverse natural resources becomes crucial. This research delves into the nuanced impacts of various natural resources on economic growth in resource-affluent economies from 1989 to 2022, an area previously overshadowed by generalized studies. Specifically, it evaluates the differential contributions of oil rents (ORNT), natural gas rents (NGRNT), and mineral rents (MNRNT) to sustainable development. Employing rigorous analytical techniques, including diverse panel data methods and the Kao test, the study reveals that oil rents significantly bolsters economic growth, presenting a ‘resource blessing’. In contrast, natural gas and mineral rents tend to precipitate a ‘resource curse’. Crucially, the research underscores the role of population dynamics and energy utilization in these economies, identifying a bidirectional causality between oil rents and energy use, and a unidirectional one with population growth. Interestingly, no causality was observed for natural gas rents and mineral rents. These insights advocate for tailored economic policies that maximize the benefits of oil rents while counteracting the detrimental effects of natural gas and mineral rents, emphasizing efficient resource management for sustainable growth.

How Do Natural Resource Rents Affect the Ecological Footprint? A Study for 24 Nations

The main objective of this study was to analyse the disaggregated effect of natural resource rents on the ecological footprint in 24 countries. The impact of rents from oil, natural gas and minerals was examined. Using the CS-ARDL approach, it was found that these natural resources increase the ecological footprint, albeit by different amounts. For example, oil rents have a greater impact on the environment than natural gas and mineral rents. The latter generate less environmental pollution. In addition, using the approach of Dumitrescu and Hurlin (2012), a bidirectional relationship was found between oil rents and the ecological footprint. A similar result was obtained between mineral rents and this indicator of environmental degradation. This implies that, if countries decide to reduce their ecological footprint, the rents they derive from these resources will be affected. Therefore, it is essential that nations promote environmentally friendly natural resource extraction practices, using advanced technologies aligned with sustainable development principles. In the case of natural gas rents, these were found to cause an impact on the ecological footprint without feedback effects. This means that countries can be sure that decreasing their ecological footprint will not have an economic impact in relation to the rents they earn from natural gas. Therefore, countries are encouraged to continue to promote the sustainable extraction of this resource.

Exploring the impact of natural Resource utilization on human capital development: A sustainable development perspective

The COVID-19 pandemic has had a profound impact on societies worldwide, highlighting the need for sustainable development practices. This study focuses on the N-11 countries, aiming to investigate the influence of coal rent, oil rent and mineral rent on human capital by controlling the role of economic growth and financial development from 1990 to 2021. The study analysis begins by conducting preliminary tests to address cross-section dependency, slope heterogeneity, unit root, and cointegration to ensure robust and accurate findings. The study employed the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) techniques for the panel data analysis. The LM cointegration method results reveal the existence of long-run relationship among the study variables. These test findings revealed that natural coal rent, oil rent and mineral rent are positively and significantly associated with human capital. We observe that economic growth and financial development also helpful to increase the human development level in these group of countries. Based on these finding, this study suggests different policy implication for these group of countries which will help policymakers to reach on consensus. Exploring the impact of natural resource utilization on human capital development from a sustainable development perspective during COVID-19 highlights the need for informed policy decisions. By considering the economic, social, and environmental dimensions, policymakers can create a resilient and sustainable future. Integrating sustainable development principles, embracing technology and innovation, and fostering international cooperation are essential to ensure a positive impact on human capital development in the face of resource utilization challenges.

Do natural resources ensure energy efficiency? A novel paradigm of resources-efficiency nexus for sustainable development

There is been ample discussion on the resource-growth and resource-finance nexus in almost every country but the resource-energy paradigm is lacking in developed and developing economies. Henceforth, this research inspects the link between natural resources and energy efficiency in the USA from 1985 to 2021. To avoid biases in the outputs, the research also included the role of economic growth (GDP) and renewable energy(REC). The research utilized an updated time series data sample and also employed relevant approaches which comprise DF-GLS for unit root determination, the Bayer-Hanck test for equilibrium, and the novel MMQR as the primary approach. For robustness tests, the research included parametric tests such as FMOLS, DOLS, CCR, and a non-parametric approach which is BSQR for validity. The results observed that variables are stationary at Difference D(1) and long-term equilibrium has been found. Moreover, the main outcomes disclose that natural resources have an asymmetric relationship where the forest rents present a resource curse while mineral rents have blessings for energy efficiency in the USA across all quantiles. Moreover, GDP and REC substantially improve energy efficiency in the USA. The robustness protocols exhibit that outcomes are analogous to the main outcomes and are therefore, valid, reliable, and robust. Established on the estimates, the research provides relevant policy suggestions to policymakers concerning the sustainable use of natural resources, economic growth, and renewable energy related to energy efficiency.

Effects of resource abundance on economic complexity: Evidence from spatial panel model

This study utilizes the spatial panel method to investigate the direct and spatial spillover effects of resource rents on economic complexity (ECI) based on a cross-country panel data covering 123 countries from 1995 to 2018. First, our empirical results highlight a strong clustering trend in the geographical distribution of global economic complexity. Second, we find that overall resource abundance significantly affects local ECI negatively, aligning with the resource curse hypothesis. However, the evidence remains inconclusive concerning the negative effects of overall resource abundance on the ECI of neighboring countries. Third, as for local ECI, the resource curse hypothesis holds for oil rents and mineral rents, a resource blessing emerges for gas rents. Interestingly, while oil and gas rents could significantly hinder the ECI improvement of spatially related countries, coal rents and mineral rents exhibit positive and significant spatial spillover effects. Fourth, our regional heterogeneity analysis yields very nuanced and diversified findings, notably revealing negative spatial spillover effects of oil rents for most regions except NAEU (Northern America and Europe). Conversely, underdeveloped regions like SSA (Sub-Saharan Africa) benefit from coal rents for not only their own ECI, but also their neighboring countries. Lastly, we also find that institutional quality and financial openness can mitigate the adverse impacts of resource rents on ECI. Yet, an increase in FDI inflows may exacerbate these effects.

Resources extraction, industrial sector, and economic growth: Middle East and North African economies overview

The sustainable management of resource extraction while simultaneously promoting industrial production to attain sustainable development has been a subject of ongoing debate in current times. There is a lack of comprehensive investigation on the connection between natural resources, economic expansion, and industrial progress in developing economies, particularly in African and Middle Eastern nations, from 1990 to 2020. This research intends to cover this research gap by investigating the interconnection between natural resources and the economic progress of these regions during the specified timeframe. Additionally, the study incorporates industrial expansion and trade as control variables, introducing a novel perspective on how these factors can harness natural resources efficiently and contribute to sustainable economic growth. Numerous time series approaches are included in the research which is: ADF-GLS for the unit root process study for the prime results, (ARDL) is employed and for robustness check, the study uses two parametric approaches which include FMOLS, DOLS CCR, and Robust least squares. The outcomes exhibit that variables are stationary at first difference D (1). The empirical findings reveal that mineral rents improve on economic growth in the long term which shows a blessing for the economies in the future while the outcomes of mineral rents are insignificant and inconclusive in the short run. Moreover, industrial expansion increases economic growth while trade significantly reduces economic growth in African and Middle Eastern economies. The robustness check analysis provides similar estimates to the key findings of ARDL estimates. Moreover, policies aimed at sustainable extraction of resources (mineral rents) and efficient handling of industrial expansion could enhance sustainable economic expansion.