Natural Resource Dependence Research Articles

The road to inclusive green growth in China: Exploring the impact of digital-real economy integration on carbon emission efficiency

With the emergence of digital transformation, China confronts the dual challenge of fostering sustainable economic and social development while fulfilling its "dual-carbon" commitments. Is the digital-real economy integration a blessing or a curse for inclusive green development? The study was conducted under this backdrop. This paper explores the impacts and mechanisms of digital-real economy integration on carbon emission efficiency, utilizing panel data from 274 Chinese cities over the period from 2011 to 2021. The results indicate that this profound integration significantly enhances urban carbon emission efficiency, although this relationship is partially mediated by industrial structure upgrading. Additionally, natural resources dependence may compromise efficiency gains, exhibiting varying effects across different contexts. The impact of digital-real economy integration on carbon efficiency (Cee) manifests as a non-linear U-shaped relationship that intensifies with increased integration. Heterogeneity analysis reveals that major, eastern, coastal, and resource-scarce cities experience the most profound benefits. These findings highlight the urgency of advancing digital carbon neutrality and offer strategies for emerging economies to transcend traditional constraints, thereby achieving green economic recovery and inclusive development.

Natural Resource Dependence and Household Adaptive Capacity: Understanding the Linkages in the Context of Disaster Resettlement

Natural Resource Dependence and Household Adaptive Capacity: Understanding the Linkages in the Context of Disaster Resettlement

Nexus between natural resource endowments and economic growth in selected African countries

Africa began implementing the Sustainable Development Goals (SDGs) in 2015 emphasizing on sustainable management and effective use of natural capital to spur economic growth (Goals 12, 14, and 15). This study using World Bank data sets from 46 African countries selected for the years 2000 to 2022, examined the nexus between natural resource endowments and economic growth in Africa. We used the system generalized method of moments (sys-GMM) and dynamic panel threshold regression (DPTR) to analyze the data. The findings of the two-step sys-GMM estimation using 'xtabond2' revealed that when the institutional quality variable is added and excluded from the model, natural resource dependence negatively impacts economic growth, but the impact is greater when the institution is excluded. In the estimation of the interaction variable of natural resource dependence and institutional variable included in the model, natural resource dependence positively impacts economic growth. The results of the DPTR using "xthenreg" showed that when the threshold value of natural resource dependence is ≤ 1.73% of gross domestic product, natural resource dependence has a positive impact on economic growth and a negative impact when the threshold value is above 1.73%. Similarly, when the institutional quality threshold is ≤ 0.277, natural resources dependence impacts economic growth negatively; above the threshold (0.277), the impact is positive. In conclusion, natural resource endowment is a curse with no or low-quality institutions and a blessing with high-quality institutions. Thus, building strong institutions and proper utilization of natural resources helps to minimize the adverse impact of resource endowments on economic growth.

Effect of dependence on natural resources on employment quality: Insights from African countries

AbstractThis study evaluates the effect of natural resource dependence on employment quality in Africa, analysing data from 2002 to 2020. Our findings indicate that resource dependence is positively and significantly linked to poor employment quality. Specifically, a one‐percentage‐point increase in resource rent dependence results in a 0.026‐percentage‐point rise in vulnerable employment and a 0.282‐percentage‐point increase in working poverty rates. However, this effect of resource rents on employment quality occurs only when institutional quality is low. Once institutional quality surpasses a certain threshold, this adverse effect is reversed. These results highlight the need for policies that diversify economic structures to reduce African economies' overreliance on natural resource rents and enhance institutional quality.

The impact of natural resource dependency on green economic growth: A business environment perspective

Transforming the “resource curse” into a “resource blessing” is crucial for achieving sustainable development goals. This paper develops business environment indicators using ecosystem theory to examine the influence of natural resource reliance on green economic growth from a business environment perspective. The empirical study is based on panel data analysis of 266 Chinese cities from 2012 to 2021. The results show that the business environment and its sub-dimensions financial environment, market environment, and political and legal environment can weaken the inhibitory effect of natural resource dependence on green economic growth, and robustness and endogeneity analyses are conducted. Further, the threshold regression reveals that the business environment and its sub-dimensions of financial environment can turn the “resource curse” into “resource blessing” after reaching the threshold value. Finally, heterogeneity analysis reveals that the same policy has varying regulatory effects in resource-based versus non-resource-based cities.

A capability assessment model for implementing digital technologies in Nigerian heavy construction firms

PurposeDue to the critical importance of digital transformation in enhancing industrial growth and competitiveness, especially in heavy construction, this study introduces a tailored capability assessment model and self-appraisal tool for firms in this sector. These resources enable them to gauge their readiness for adopting digital technology effectively.Design/methodology/approachUtilizing the Technology—Organization—Environment (TOE) and Natural Resource Dependence Theory (NRDT) frameworks, 22 markers were identified to structure a questionnaire distributed to construction professionals. Descriptive analysis and fuzzy synthetic evaluation (FSE) were used to develop the capability assessment model. A validation survey assessed the validity of both the model and the self-appraisal instrument.FindingsThe study identified the top five significant markers: (1) leadership commitment to digital transformation, (2) workforce readiness for technology integration, (3) potential ROI through efficiency gains, (4) technology maturity for construction applications and (5) complexity of integrating new technologies with existing workflows. Through FSE, the most critical factors were technology-related, organizational and resource optimization markers.Originality/valueBy employing the TOE and NRDT frameworks, the study identifies the most critical factors influencing digital adoption in heavy construction. Also, the user-friendly self-appraisal instrument developed in this study can be considered a valuable contribution, as it provides heavy construction firms with a practical tool for ongoing monitoring and improvement of their digital transformation efforts.

Income inequality, governance quality, and environmental degradation in Asian countries: Does interaction of governance quality matter? Evidence from panel data

The objective of this research is to examine the effects of income inequality, governance quality, and their interaction on environmental quality in Asian countries. Time series data are obtained from 45 Asian countries for the period 1996–2020 for this empirical analysis. The research has performed various econometric tests to ensure the robustness and reliability of the results. We have addressed different econometric issues, such as autocorrelation, heteroskedasticity, and cross-sectional dependence, using the Driscoll-Kraay (DK) standard error estimation and endogeneity issues by the system generalized method of moments (S-GMM). The results of the study revealed that income inequality and governance quality have a positive impact on environmental degradation, while the interaction of governance quality with income inequality has a negative effect on it. In addition, economic growth, population growth, urbanization, and natural resource dependency are found to deteriorate the quality of the environment. The findings of the study offer insightful policies to reduce environmental degradation in Asian countries.

Role of natural resources, renewable energy sources, eco-innovation and carbon taxes in carbon neutrality: Evidence from G7 economies

Global warming has created problems for human life, and it has been increasing for a few years. All the developing and developed countries are establishing policies to attain zero carbon status. This study extends the ongoing debate on carbon emissions. It examines the effect of natural resources and RE (Biofuel and other renewable sources) on greenhouse gas (CO2 emission and PM2.5) emissions while using data over 22 years (1999–2021) from G7 countries. In addition, this study has investigated the effect of carbon taxes, financial development, and environmental policies on carbon neutrality. The cross-sectional-ARDL, the Common correlated effect means group (CCEMG), and the Augmented mean group (AMG) cutting-edge model have been employed. Quantile regression has been employed for robustness. The study results demonstrate that biofuel and other renewable energy (RE) sources, carbon taxes, environmental policy, and eco-innovation decrease greenhouse gas emissions (CO2 emissions). Meanwhile, financial development, and natural resource dependence positively impact carbon neutrality. The robustness result also verifies the findings from CS-ARDL, AMG, and CCEMG methods. The empirical findings are used to infer policy implications for G7 economies.

Perception of Climate Change Vulnerability and its Impact on Sexual and Reproductive Health and Rights in Khutiya and Banganga River Basins.

Nepal is one of the most vulnerable countries to climate change. The drivers of climate risk include its topography, ecological diversity, climatic variability, natural resource dependency, under-development, and socioeconomic vulnerabilities. Climate change affects women and girls in unique ways. Research conducted in Asia Pacific region highlight negative sexual and reproductive health outcomes from climate change-related stressors such as droughts, floods, and air pollution, factors also linked to decreased SRH services utilization, increased maternal mortality rates, and repercussions on women's mental health. This is a mixed methods study conducted in two river basins including household surveys with 384 females ages 18-49, 12 focus group discussions, and 22 key informant interviews. We conducted descriptive and thematic analysis. More than half relied on agriculture for income (66%). Despite one-third being heads of households, land ownership was low (13%). Climate change perceptions included rising temperatures (88%), increased heat wave (70%), drying water source (99%), and delayed monsoons (83%), impacting agriculture and increasing women's workload (61%) due to displacement and male migration. 64% reported disturbances in antenatal and postnatal care visits . Inaccessible healthcare facilities during the rainy season increased maternal mortality risks. Heavy river flooding hindered female community health volunteers access leading to childbirth complications. 82% of women feared being unable to protect their children post-climate events. Moreover, 21% of women faced gender-based violence during or after climate disasters. Our findings suggest clear impacts of climate change on women and the communities. Thus, climate adaptation efforts must be designed to address the unique impacts of the crisis on women and girls, making space for their increased participation and leadership.

Does natural resource dependence restrict green development? An investigation from the “Belt and road” countries

Addressing natural resource dependence is integral to achieving the Sustainable Development Goals by promoting economic diversification, environmental sustainability, and climate resilience. This study explores the effect of natural resource dependence on green development by adopting the balanced panel dataset from the “Belt and Road” countries from 2005 to 2019. Notably, the novelty of our analysis lies in the empirical analysis using instrument-based techniques that consolidate the “green development curse hypothesis” in the Belt and Road countries. The mechanism analysis reveals that natural resource dependence curbs green development by weakening innovative capability, disturbing institutional quality, reducing population density, and crowding out human capital. Further, the dynamic panel threshold model handling endogeneity verifies the nonlinear relationship between natural resource dependence and green development. Interestingly, digital trade offers greater “resilience” than traditional trade, correcting the resource curse dilemma. Finally, heterogeneity analyses indicate that the green development curse hypothesis only exists in countries with high-level environmental regulations and resource-based countries.

Impact of natural resource dependence on green technology development: Role of digital governance in mitigating resource-curse using big data

The pursuit of a green economy as a strategy to counteract the “resource curse' phenomenon represents a burgeoning paradigm shift. A sophisticated digital governance infrastructure is vital, serving as an integral mechanism for ensuring transparency, enhancing data efficacy, and fostering public involvement—all crucial components of sustainable environmental stewardship. In light of this context, our analysis examines the interplay between natural resource dependence and green technological innovation, as well as delineating the potential pathways interlinking the two, through an empirical assessment using provincial data from China spanning the years 2011–2021. Employing advanced techniques in big data text mining, we have devised a government digital transformation index calibrated to elucidate the impacts of digitalization on the twin variables of natural resource reliance and the propagation of green technologies. Our findings indicate a marked deleterious influence of natural resource dependence on the evolution of green technological initiatives at the regional level, a trend most pronounced in China's central and western provinces as well as in locales with comparatively low economic development metrics. Furthermore, our research ascertains that the impeding force of natural resource dependence on green technology ascension is primarily exercised through diminished regional research and development capabilities, stagnation of industrial structure progression, and limited openness to external economic integration. Finally, the study posits that the implementation of digital governance measures holds the capability to substantially mitigate the restrictive impact of natural resource dependence on green technology advancement. This underscores the imperative for a digital governance architecture that actively neutralizes and meticulously monitors the adverse outcomes associated with resource consumption.

Illuminating sustainable household well-being and natural resource dependence in the case of disaster resettlement in rural China.

In order to transform rural development, the implementation of disaster resettlement projects should not only reduce environmental hazards, but also improve the sustainability of natural resources and household well-being. This article assesses sustainable household well-being (SHWB) and natural resource dependence using a quantitative survey of rural China. It identifies four classes of relationship between SHWB and natural resource dependence and explores the impact of disaster resettlement on these classes. The result shows that rural households that participate in disaster resettlement as well as in voluntary relocation, centralized relocation, and new-stage relocation are more likely to achieve "high well-being and low dependence." However, the overall SHWB level of the relocated households is lower than that of the non-relocated households, and disaster resettlement also has a significant positive impact on the "low well-being and low dependence" class. It is recommended that governments implement measures to address these issues. The findings in this article could shed light on the impact of resettlement programs on rural households elsewhere.

Investigating the carbon curse of natural resource dependence: A carbon trading scheme

Fossil-based natural resources are carbon-intensive, and over-reliance on them often leads to persistent high carbon emissions at national or regional levels, resulting in the carbon curse. Based on the panel data of 114 resource-based cities in China from 2007 to 2020, this paper examines the carbon curse and solutions for these cities from the perspectives of total and intensity of carbon emissions. The results show that: Firstly, due to the different stages of urban development, resource endowment, degree of resource dependence, and policy background, there is a heterogeneity of carbon curse in China's resource-based cities. Secondly, the carbon emission trading policy can effectively mitigate the carbon curse in China's resource-based cities, and the robustness tests demonstrate the validity of this finding. Thirdly, under the carbon emission trading policy, industrial structure upgrading and digital transformation can play a secondary moderating role in resolving the carbon curse in resource-based cities, further strengthening the inhibitory effect of the carbon emission trading scheme on the carbon curse. In contrast, green technology innovation exhibits no enhancement in the impact of the policy. These findings contribute to the existing research on the carbon curse, offering valuable insights and policy implications for effectively addressing this challenge.

Does natural resource dependence influence the impact of financial technologies on corporate ESG and digital governance in China's listed enterprises?

In recent years, the concept of ESG has emerged globally and received widespread attention. In theory, financial technology in resource-dependent regions is expected to contribute to the development of corporate ESG. However, this has yet to be verified. This article selects 16,146 A-share listed companies in China as research samples from 2009 to 2019 and empirically analyzes the relationship between financial technology, natural resource dependence (Nrd), and ESG. The study shows that FinTech enhances corporate ESG, while Nrd constrains FinTech's enhancement impact on corporate ESG. This conclusion still holds after the endogeneity test and robustness test. Besides, Nrd constrains FinTech's effect on ESG in small and medium-sized enterprises (SMEs), state-owned enterprises, firms in the Middle East, and heavily polluting industries. FinTech can impact corporate ESG by easing financing constraints and driving digital transformation. This study provides a rationale for the rapid development and broad application of FinTech and digital governance in companies' drive for sustainable development.

Natural resource dependence and sustainable development policy: Insights from city-level analysis

Under the unprecedented negative impacts of global economic slowdown and environmental deterioration, the question of how to turn the “natural resource curse” into the “natural resource blessing” has become a major emerging issue. This study estimates how a dynamically implemented sustainable development policy can break down the natural resource curse in 283 Chinese cities from 2009 to 2019, with the time-varying difference-in-differences model adopted. The findings indicate that: (1) As for the pilot cities, this sustainable development policy can reduce their natural resource dependence by 30.81% at the 1% significance level, with the overall policy effect being more evident among resource-based and industry-based cities. (2) Cities can employ green patent output as an effective mechanism to enhance policy-stimulating effects on natural resource dependence, among which green utility patent output works better. (3) Cities in multi-regional-level urban agglomerations will have more policy effects in breaking natural resource curses.

The effect of sovereign credit ratings on democracy in sub-Saharan Africa

PurposeThis study investigates (1) whether democratization drives sovereign credit ratings (SCR) changes (the “democratic advantage”) or whether SCR changes affect democratization, (2) whether the degree of democratization in sub-Saharan African (SSA) countries affects the associations and (3) whether the associations are significantly affected by resource dependence.Design/methodology/approachThis study investigates the effects of SCR changes on democracy in 22 SSA countries over the period of 2000–2020 VEC Granger causality/block exogeneity Wald tests, and impulse responses and variance decomposition analyses with Cholesky ordering and Monte Carlo standard errors in a panel VECM framework.FindingsThe full sample impulse responses find that a SCR shock has a long-run detrimental effect on the democracy and political rights but only a short-run positive impact on civil liberties. Among the sub-samples, it is found that the extent of natural resource dependence does not affect the magnitude of SCR shocks on democratization mentioned above but it is found that a SCR shock affects long-run democracy in SSA countries that are relatively more democratic but is more likely to drive democratic deepening in less democratic SSA countries. The full sample variance decompositions further finds that the variance of SCR to a political rights shock outweighs the effects of all the macroeconomic factors, whereas in more diversified SSA countries, the variances of SCR are much greater for democracy and political rights shocks, which suggests that democratization and political rights in diversified SSA economies are severely affected by SCR changes. In the case of the high and low democracy sub-samples, it is found that the variance of SCR in the relatively higher democracy sub-sample is greater than in the low democracy sub-sample.Social implicationsThese results have three implications for democratization in SSA. First, the effect of a SCR change is not a democratically agnostic and impacts political rights to a greater extent than civil liberties. Second, SCR changes have the potential to spark a negative cycle in SSA countries whereby a downgrade leads to a deterioration in socio-political stability coupled with increased financial economic constraints that in turn drive further downgrades and macroeconomic hardship. Finally, SCR changes are potentially detrimental for democracy in more democratic SSA countries but democratically supportive in less democratic SSA countries. Thus, SSA countries that are relatively politically sophisticated are more exposed to the effects of SCR changes, whereas less politically sophisticated SSA countries can proactively shape their SCRs by undertaking political reforms.Originality/valueThis study is the first to examine the associations between SCR and democracy in SSA. This is critical literature for the Africa’s scholarly work given that the debate on unfair rating actions and claims of subjective rating methods is ongoing.

Properties of Cementitious Materials Utilizing Seashells as Aggregate or Cement: Prospects and Challenges.

Nowadays, the sustainable development of the construction industry has become a focus of attention. Crushing and grinding waste seashells originating from the fishery industry, such as oyster shells, cockle shells, mussel shells, and scallop shells, into different particle sizes for usage as aggregate and cement in concrete or mortar provides an effective and sustainable solution to environmental problems by reducing natural resource dependence. Numerous studies have attempted to analyze the suitability of waste seashell as a possible alternative to natural aggregates and cement in concrete or mortar. This paper presents an up-to-date review of the characteristics of different types of waste seashell, as well as the physical, mechanical, durability, and other notable functional properties of seashell concrete or mortar. From the outcome of the research, waste seashell could be an inert material, and it is important to conduct a series of proper treatment for a better-quality material. It is also seen from the results that although the mechanical properties of seashell concrete have been reduced, they all meet the required criteria set by various international standards and codes. Therefore, it is recommended that the replacement of seashells as aggregate and cement should not exceed 20% and 5%, respectively. Seashell concrete or mortar would then have sufficient workability and strength for non-structural purposes. However, there is still a lack of investigation concerning the different properties of reinforced concrete members using seashells as the replacement of aggregate or cement. Further innovative research can solidify its utilization towards sustainable development.

Can resolving geopolitical tensions help South Asian countries elude the carbon curse of natural resources?

South Asia is regarded as highly vulnerable to climate change-related concerns. Thus, it is of utmost importance for South Asian countries to conceptualize environmental development policies that can be implemented to tackle carbon emission-related environmental hazards. Moreover, due to high reliance on natural resources, almost all South Asian nations find it extremely difficult to reduce their carbon discharges. Therefore, taking note of these concerning issues, this study aims to explore the environmental impacts associated with natural resource dependency, geopolitical tensions, financial development, and urbanization in the context of major South Asian countries including Bangladesh, Pakistan, India, and Sri Lanka. Notably, this study emphasizes whether reducing geopolitical tensions, by resolving external conflicts, can help these nations limit the carbon emission-related problems that are specifically associated with natural resource consumption. In this regard, a composite carbon curse index is calculated using data regarding three carbon emission-based indicators of environmental quality (per capita carbon dioxide emissions, rate of carbon intensity of energy use, and per capita consumption-based carbon footprints). For analytical purposes, several advanced panel data estimation methods that are robust against cross-sectionally dependent data with heterogeneous slope coefficients and endogeneity-related issues, are employed. Overall, the results endorse that more dependence on natural resources for stimulating economic growth worsens the carbon curse faced by the South Asia nations. By contrast, reducing geopolitical tensions through the resolution of external conflicts is observed to help the selected South Asian countries limit the carbon curse associated with natural resource consumption, both directly and indirectly. Therefore, in line with these findings, relevant decarbonization policies are recommended, which the concerned South Asian governments can take note of when designing green growth policies in the future.

The fiscal effects of natural resource dependency in sub‐Saharan Africa

AbstractThis study investigates the fiscal implications of natural resource dependence in resource‐rich sub‐Saharan African economies, particularly focusing on the impact of resource revenues on tax revenues, government spending and national savings to assess the sustainability of natural resource reinvestments. Employing a two‐step system Generalized Method of Moments on a dataset with 672 observations, the study identifies significant reductions in non‐resource tax revenues, government current consumption and overall savings associated with an increase in resource revenues. Conversely, a positive coefficient is noted for public investment. The study underscores the importance of high‐quality institutions in mitigating adverse effects and controlling increased public investments. Recommendations include directing resource revenues towards well‐structured taxation frameworks and investing in efficient institutions to manage current consumption, monitor public investment growth and enhance savings. These measures are crucial for curbing procyclical spending and promoting sustainable development in resource‐rich sub‐Saharan African economies.

Unleashing the dynamic linkages among natural resources, economic complexity, and sustainable economic growth: Evidence from G‐20 countries

AbstractThis research delves into whether access to natural resources is a blessing or a curse, a matter of contention within contemporary literature. Lacking conclusive evidence, particularly within the G‐20 countries, this study endeavors to establish the intricate linkages between economic development, natural resources, and economic complexity. A subset of G‐20 economies from 1990 to 2021 was used to analyze the results of the second‐generation CS‐ARDL model. After accounting for variables like corruption, total labor force, gross capital formation, trade openness, and inflow of foreign direct investment, we find that natural resources, economic complexity, corruption and gross capital formation are significant and adverse predictors of economic growth. Natural resource dependence is susceptible to price fluctuations and sustainability concerns, economic complexity may introduce market volatility challenges, corruption erodes trust and transparency, and excessive gross capital formation can lead to economic imbalances. On the other hand, economic growth is positively impacted by the additional effects of the control variables, including foreign direct investment, trade openness and labor force. In crafting its policy recommendations, this study artfully weaves a tapestry that resonates with the core principles of the Sustainable Development Goals (SDGs). These strategic imperatives include the adept stewardship of resources, the cultivation of economic diversity, the seamless facilitation of trade, the fortification against corruption, and a harmonious symphony that underscores financial stability and the nurturing of human capital, ultimately painting a vivid portrait of sustainable economic growth.