Oil Rents Research Articles

Measuring the Impact of oil Revenues on Monetary Policy Tools in Iraq for the Period (2003-2023)

Monetary policy is the axis around which various economic policies revolve, despite their different intellectual approaches, due to its direct impact that overlaps with all economic aspects of society. Monetary policy gains its strength from controlling money, as the latter is the axis in employing specific resources to satisfy scarce needs, meaning that money is the essence of the economy, and other economic concepts are only reflections of it. Production is money that depends on the interaction of desire with ability, saving is money, investment is money, and even economic problems are money. Poverty is nothing but its scarcity, wealth is nothing but its abundance, and the absence of justice is nothing but its absence in distribution. However, this straight direction of monetary policy is exposed to many challenges that reflect a trend from a means of achieving economic prosperity to a tool for deepening economic backwardness, and the reflection of rentier behavior is one of them, and even the most important in particular. Therefore, to create a clear picture of the adverse impact of oil rents, we must stop at the station of rentier effects on quantitative tools, to know the level of influence or not, so that this standard model is the basic starting point for moving towards developing quantitative tools for monetary policy in the Iraqi economy after describing the levels of rentier reflection on the indirect tools of monetary policy in its two aspects, the general aggregate and the specialized detailed.

Is natural resource wealth a boon or a bane? The impact of oil rents and foreign direct investment on economic growth in Kazakhstan

The nexus between foreign direct investment, natural resource endowment, and their impact on sustained economic growth, is contentious. This study investigates the resource curse hypothesis and the effects of FDI on economic growth in Kazakhstan. The study covers the period from 1990 to 2022 and employs the Autoregressive Distributed Lag (ARDL) model and Toda-Yamamoto causality methods. The Bounds cointegration results reveal the existence of long-term equilibria between per capita GDP and the predictors. The findings reveal a significant impact of oil rents on economic growth, contradicting the resource curse hypothesis and suggesting a resource boon instead. In stark contrast, the impact of FDI on Kazakhstan’s economic growth is found to be insignificant, despite the presence of a causal nexus. Furthermore, economic freedom and export diversification have a positive significant impact on economic growth, while inflation exhibits a negative but significant impact. Although governance has a direct impact on GDP per capita, it is deemed insignificant, as the negative average governance index implies poor governance. Expectedly, the result establishes a causal effect between export diversification, economic freedom, governance, oil rents, and economic growth. This underscores the fundamental role played by the interplay of diversification, economic freedom, governance, and oil rents in fostering sustainable economic growth. In addition, economic freedom stimulates gross fixed capital formation, indicating that it enhances domestic investment. Notably, the findings refute the crowding-out effect of FDI on domestic investment in Kazakhstan. Consequently, to escape the resource curse and the Dutch disease syndrome, the study advocates for enhancing good governance capabilities in Kazakhstan. Thus, we recommend that good governance could reconcile the twin goals of economic diversification and deriving benefits from oil resources, ultimately transforming oil wealth into a boon in Kazakhstan.

The contribution of green technological innovation, clean energy, and oil rents in improving the load capacity factor and achieving SDG13 in Saudi Arabia

This research aims to assess the effects of green technological innovation, renewable energy sources, and oil rents on the load capacity factor in Saudi Arabia from 1988 to 2021. The primary conclusions can be outlined as follows. The combined cointegration and Saikkonen-Lütkepohl cointegration tests reveal long-run relationships between the load capacity factor and the explanatory variables at the 1% significance level. In comparison, the Phillips-Ouliaris test shows evidence of cointegration only at 10%. Moreover, the quantile regression indicates that oil rents adversely impact environmental quality; however, they remain contingent upon environmental conditions. A 1% increase in oil rents results in a decline in environmental quality by 0.025% under poor conditions, 0.036% under moderate/normal conditions, and 0.108% under good conditions. On the contrary, renewable energy consumption and green technological innovation improve environmental quality, irrespective of the prevailing environmental conditions. However, the environmental impacts of renewable energy consumption exceed those of green technological innovation. Results show that a 1% increase in renewable energy consumption leads to a 0.052-0.253% improvement in environmental quality, whereas a 1% increase in green technological innovation results only in a 0.017-0.047% improvement. Finally, population and GDP per capita exert negative and positive implications on the load capacity factor, respectively, while energy intensity has no significant environmental effects. The research findings provide significant insights and suggest policy recommendations to address climate change and meet the targets set out in SDG13.

Do natural resources influence E-government in developing countries? Effects and transmission channels

E-government has taken a prominent place in the political and economical debate. Despite the vast non-consensual literature, on the effects of natural resources, very little is known about the effects of these resources on the development of e-government. This study aims to fill this gap by analyzing the effect of natural resources on the development of e-government in a panel of 121 developing countries over the period 2003–2021. Through several empirical approaches, our results show that, on average, natural resource rents negatively affect the development of e-government. Distinguishing between different types of natural resources, we note that the negative effect of natural resources on the development of e-government remains, and the magnitude is more persistent for forestry, gas and oil rents. Furthermore, the mediation analysis suggests that the negative effect of natural resources on the development of e-government is influenced by trust in institutions, the size of the informal sector, corruption, and the quality of telecommunications infrastructures.

Diversification and the Resource Curse: An Econometric Analysis of GCC Countries

This research explores the effects of significant global economic shocks, such as the 2008 Global Financial Crisis and the 2020 COVID-19 pandemic, on GDP growth in the Gulf Cooperation Council (GCC) nations. Employing a dynamic generalized method of moments (GMM) model, the analysis highlights the strong momentum effect of lagged GDP growth, where past performance plays a critical role in shaping current economic outcomes. The findings also reveal that natural resources continue to positively influence short-term growth, but with diminishing returns over time, supporting the resource curse hypothesis and underscoring the need for broader structural reforms to ensure long-term sustainability. In addition, the results show that external investments flowing into the country, trade balance, and inflation emerge as key drivers of economic growth. While moderate inflation is positively associated with economic expansion, unemployment exerts a significant negative effect on GDP growth, particularly in models that account for country-specific characteristics. This emphasizes the need for labor market reforms to improve employment rates and support sustainable development. The role of gross capital formation, particularly in both the dynamic GMM and random effects models, further underscores the importance of strategic domestic investment, especially during periods of global disruption. These findings emphasize the critical need for economic diversification in the GCC. Policymakers should focus on attracting foreign investment, managing inflation, enhancing human capital, and boosting domestic investment to mitigate the adverse effects of the resource curse and secure sustainability. While market capitalization and oil rents may stimulate short-term growth, their long-term sustainability remains uncertain without greater diversification. Both external and domestic investments emerge as critical drivers of long-term growth, while persistent challenges such as inflation and unemployment continue to pose risks to economic stability. The study highlights the need to reduce reliance on oil and leverage human capital to build more resilient economies capable of adapting to future challenges. By offering dynamic, empirical insights into the balance between resource reliance and sustainable growth, this research adds valuable insights to the policy discussion on economic diversification in the GCC. Policymakers are urged to prioritize FDI, inflation management, domestic capital formation, and human capital development to mitigate vulnerabilities and ensure sustainable economic growth in the face of ongoing global uncertainties.

Non-linear effects of three core mineral resources, energy uncertainty, and inclusive digitalization on economic growth: A comparative analysis of US and China

This study examines the asymmetric effects of mineral resources (oil, coal, and gas), digitalization, and energy uncertainty on economic growth in China and the USA. Using quarterly data from 2000 to 2022, we employ the nonlinear autoregressive distributed lag (NARDL) model to analyze these relationships. The study begins by conducting unit root tests, cointegration analysis, and asymmetry tests to establish robust connections between the variables. The long- and short-run results confirm the presence of asymmetry, as positive and negative shocks in oil rents, digitalization, and energy uncertainty affect economic growth differently. Notably, positive shocks in oil rents and digitalization favour economic growth, indicating that increases in oil rents and digital inclusion contribute to economic development. Conversely, positive shocks in energy uncertainty tend to reduce economic growth. Interestingly, the findings for China and the USA show similar asymmetric patterns; coal and natural gas rents positively influence economic growth, while the control variables suggest that capital and labour increase contribute to both countries' development. The error correction terms, 0.731 (73.1%) for China and 0.625 (62.5%) for the USA, indicate the annual rate at which asymmetric discrepancies are corrected. All diagnostic tests confirm the suitability of the NARDL model for this study. Finally, the study reveals significant bi-directional causality among all pairs of variables.

Налоговые и таможенно- тарифные инструменты изъятия нефтяной ренты в доход российского бюджета

For countries focused on the extraction and processing of natural resources, including Russia, the crucial task is to ensure the rational extraction and distribution of natural rent. The tax model applied to natural rent should facilitate its optimal allocation to the budget without undermining the motivation of resource users to invest. The purpose of this study is to gauge the extent of oil rent extraction to the Russian budget and to propose strategies to improve the efficiency of oil rent redistribution to the state budget. According to the author’s hypothesis, export customs duties, compared to the mineral extraction tax, are more effective in achieving the desired redistribution of funds from resource users to the budget. The analysis shows that from 2005 to 2022 up to 87% of the oil rent received in Russia was extracted through rent payments to the state budget. However, in recent years the degree of oil rent extraction has decreased to 56%. This decline can be attributed to the tax maneuver initiated in Russia since 2015, entailing the reduction and eventual abolition of export customs duties and an increase in the mineral extraction tax rate. The results obtained indicate a decline in effectiveness of rent-based taxation in Russia due to the decreasing fiscal significance of rent payments. Furthermore, their regulatory function, designed to stimulate taxpayers to make investments, has weakened. These findings provide valuable insights for shaping fiscal policies and lay the foundation for further research in this area.

A Dynamic Analysis of Sustainable Economic Growth and FDI Inflow in Saudi Arabia Using ARDL Approach and VECM Technique

This study investigates the relationship between sustainable economic growth and foreign direct investment (FDI) in Saudi Arabia from 1980 to 2023. The ARDL approach and VECM technique are employed to analyze the short-run and long-run dynamics. The short-run results show mixed effects. Sustainable economic growth has a positive impact on current and one-period lagged FDI but a negative impact on the two periods lagged. Trade openness and infrastructure negatively affect FDI in the short run. Interestingly, oil rents and real economic growth also have negative short-run impacts on FDI, but these effects become positive with a longer lag. Long-run analysis reveals a negative relationship between trade openness, infrastructure, and oil rents with FDI, suggesting a potential crowding-out effect. Trade openness has a positive long-run impact on most variables, including sustainable growth, FDI, real growth, and CO2 emissions. Oil rents also have a positive long-run impact on these variables. This study finds six bidirectional causal relationships in the short run, primarily between trade openness, infrastructure, oil rents, and FDI. Unidirectional causality runs from oil rents, trade openness, exchange rate, sustainable growth, and real growth to FDI and infrastructure. Additionally, CO2 emissions cause FDI, and trade openness causes sustainable growth. While sustainable economic growth benefits FDI in the long run, short-term policies regarding trade openness and infrastructure require reevaluation. Oil revenue and real economic growth may initially deter FDI, but this reverses in the long term. To attract sustainable FDI, policymakers should focus on long-term economic growth strategies and consider reforms in trade and infrastructure policies. A comprehensive FDI strategy that moves beyond oil dependence and leverages trade openness is crucial to long-term economic diversification.

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.

The role of Islamic banks in promoting economic growth and financial stability: Evidence from Saudi Arabia

The aim of this study is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability, and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by Islamic banks. The study employs the fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data from 2013 to 2022. The findings indicate strong evidence that Islamic banking finance supports economic growth and improves financial system stability. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, reinforcing this link. Furthermore, oil rents in Saudi Arabia (KSA) have contributed to improving economic development and supporting the financial sector’s development to achieve economic diversification as outlined in the Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. AcknowledgmentThis work was supported and funded by the Deanship of Scientific Research at Imam Mohammad Ibn Saud Islamic University (IMSIU) (grant number IMSIU-RPP2023024).

Going ‘cold turkey’: Oil addiction and ‘traumatic’ decarbonization in fragile fossil fuel producers

Decarbonization, or the replacement of fossil fuels by renewables or ‘cleaner’ forms of energy, is an essential response to global warming. A gap in the debate on decarbonization is its implications for fragile fossil fuel-producing states (FFFPs). Unable to implement strategies for planned decarbonization, FFFPs face the prospect of rapid, unmanaged ‘traumatic’ decarbonization. This paper examines the political economy of this phenomenon drawing on six countries that have experienced dramatic losses in carbon revenues in the recent past: Ecuador, Iraq, Nigeria, South Sudan, Sudan and Venezuela. It also draws on two thematic papers – on peace-making during oil shocks and a review of the literature on energy transition in fragile states. The paper finds that in decarbonizing FFFPs, the rules of the political game tend to be ‘sticky’ and elites react to the loss of oil revenues by looking for alternate sources of rent and turning to coercion. Political settlements including peace agreements are structured around the allocation of oil rents to elites and their future viability is in question. We find only modest evidence for sustainable and democratic paths away from a carbon-based political settlement, despite the efforts of civic movements.

Oil, gold, and guns: The violent politics of Sudan’s resource re-curse

The green transition and slowdown of global fossil fuel demand present an intriguing question for the future of oil-rich developing countries where less democracy, unstable and inequitable economics, and conflict have long been prevalent. Sudan offers an ex-ante look at the consequences of this transition to a post-oil world. In 2011, Sudan lost three-quarters of its oil resources after South Sudan’s separation. This article explores the impact of decarbonization on Sudan’s political economy and the role of natural resources in shaping its elite politics and foreign relations. It argues that in the short term and mid-term, the Sudanese state was able to weather the loss of most of its oil, with incumbent political elites demonstrating staying power beyond the expiry date of high oil rents. In the long term, however, rather than a diversified economy and democratic alternative emerging, both Sudan’s longstanding predatory political economy and its external exploitative links endured the decline of oil. The rising economic importance of gold, and its political ecology as a dispersed and lootable resource, coupled with opportunities for regional extraversion facilitated the violent rise of new political elites and shaped a shift in Sudan’s main foreign economic partners from China to the Gulf states.

How does oil policy uncertainty influence resource rents? New empirical evidence from Organization of the Petroleum Exporting Countries

AbstractThe uncertainty surrounding oil‐related policies has raised concerns about its influence on revenues derived from resource extraction activities. In this view, the current study aims to investigate the nuanced relationship between oil policy uncertainty (OPU) and resource rents, focusing on oil rents (ORTs), natural gas rents (NRTs), and total resource rents (TRT). Analyzing data spanning from 1985 to 2019 across Organization of the Petroleum Exporting Countries, various econometric models including DOLS, FMOLS, and autoregressive distributed lag are employed to assess the impact of OPU on resource rents. The empirical findings reveal a significant negative effect of heightened OPU levels on resource rents, indicating a reduction in ORT, NRT, and TRT. This negative impact underscores the deterrence of long‐term investments in oil exploration and production due to regulatory unpredictability, leading to decreased revenues from oil extraction activities. Additionally, increased OPU contributes to heightened volatility in oil prices, disrupting the stability of resource rents. Furthermore, variables such as FDI inflow, inflation rate, and banking sector development exhibit positive relationships with resource rents, emphasizing their role in bolstering revenues derived from natural resources. The study's implications highlight the necessity for policymakers to address and mitigate OPU to foster stability and sustainable revenues within resource‐driven economies. This study contributes to the existing literature by offering empirical insights into the adverse impact of OPU on resource rents.

From Resource curse to digital economy Harmony in selected Belt and Road countries

This study explores how the digital economy affects the resource curse in Belt and Road Initiative (BRI) countries. Using data from 27 BRI nations (2001–2020) and fixed effect panel data analysis, we find that increased digital access and technology imports reduce resource dependency. Specifically, a 1% rise in computers per 100 inhabitants correlates with a 0.17% decrease in oil rent, indicating digital access aids economic diversification. Conversely, a 1% increase in internet access tariffs leads to a 0.29% rise in oil rent, impeding diversification. Additionally, a 1% increase in ICT goods imports results in a 0.64% decrease in oil rent. Positive coefficients for electricity consumption and population size suggest intensified resource curse effects. We recommend policies to enhance digital accessibility and technology imports, improve electricity infrastructure, and promote renewable energy sources to mitigate the resource curse in BRI countries.

Renewable Energy Consumption Determinants: Do They Differ between Oil-Exporting Countries and Oil-Importing Ones?

This paper delves into the critical determinants of renewable energy consumption, focusing on the contrasting roles of oil imports and exports. It aims to bridge the knowledge gap by comparing these determinants across both oil-importing and oil-exporting nations, offering a comprehensive and nuanced perspective to inform policy recommendations. Using annual data from 1990 to 2018 sourced from the World Bank database, the study employs panel multiple regression analysis and adopts a fixed effects model to explore two main questions: What drives the use of renewable energy sources? How does a country’s oil importer or exporter status affect these factors? The findings reveal a significant but inverse relationship between oil rents and renewable energy consumption (REC) for both types of countries. Additionally, there is a notable negative correlation between GDP growth and REC for both oil-exporting and oil-importing countries. Interestingly, the crude oil average closing price and inflation show an insignificant impact on REC in both contexts. The study also highlights that net energy imports significantly affect REC, with a much stronger inverse relationship in oil-importing countries compared with oil-exporting ones. For oil-importing countries, diversifying energy sources is a crucial investment. Governments should prioritize research and development in renewable energy to spur technological advancements, enhancing efficiency and affordability. Economic growth-promoting policies, such as tax incentives and subsidies for renewable energy businesses, are vital for encouraging sustainable practices. Consistent, long-term policies are essential for providing investor confidence and supporting the transition to renewable energy. For oil-exporting countries, similar strategies are recommended. Additionally, allocating a portion of oil revenues to renewable energy infrastructure and funding research and development in renewable technologies through local universities and startups are crucial steps. This dual approach will not only enhance energy diversification but also foster innovation and sustainability in the energy sector.

Oil rents and environmental sustainability: Do green technologies and environmental technological innovation matter?

Sustaining the environment is essential for Saudi Arabia, especially given the country’s high dependence on oil rents. While these rents have historically fueled economic growth, they have also contributed significantly to environmental degradation. Sustainable resource use and a transition from conventional to renewable energy sources are essential for achieving carbon neutrality and keeping the upsurge in global temperature below 2°C. In addition, sustainable practices help to preserve ecosystems, biodiversity, and natural resources, which are essential for the survival of all living organisms. Consequently, this study fills a significant empirical gap by investigating the moderating effects of technological innovation, environmental innovation, and green energy technologies in the oil rents and environmental sustainability nexus in Saudi Arabia from 1990 to 2022. Although there are significant direct associations between oil rents and environmental sustainability, the existing literature has not investigated empirical research on the moderating effects of technological innovation, environmental innovation, and green energy technologies in the oil rents and environmental sustainability nexus. To do this, the study implements the model of dynamic AutoRegressive Distributed Lag (ARDL) simulations. The results indicate that rising oil rents, economic growth, trade, and urbanization in Saudi Arabia worsen environmental sustainability while increasing green energy technologies, technological innovation, and environmental innovation enhances environmental sustainability. Interestingly, the findings of the moderating effects of technological innovation, environmental innovation, and green energy technologies in the oil rents and environmental sustainability nexus show that the predicted coefficients of the multiplicative interaction terms are both positive and statistically significant. This demonstrates that these technologies play crucial roles in mitigating the negative effects of oil rents on environmental sustainability in Saudi Arabia. Based on the outcomes, promoting technological innovation, prioritizing investments in green sources and reducing dependence on natural resource extraction are key policy recommendations that can significantly bolster environmental sustainability in Saudi Arabia.

The economic and fiscal transition costs of global climate mitigation in fossil fuel export dependent economies

Global decarbonization has large implications for trade and financial flows, and with few economies likely to be more affected than those relying heavily on exporting fossil fuels. This study first identifies 40 highly fossil fuel dependent economies and then, through several empirical strategies, examines the potential implications for oil rents, public finances and economic growth from global decarbonization. First, it is estimated that as a group, countries would lose more than 60 percent of oil rents alone, or between (present value adjusted) US$12–14 trillion, for the period 2023–2040 under a global ‘net-zero 2050’ versus a ‘business as usual’ scenario, - a loss equivalent in size to between 120 and 142 percent of GDP. Second, local projections model estimates suggest that there are large and persistent adverse growth and fiscal impacts associated with global decarbonization in emerging market and developing economy oil exporters. Here, a 10 percentage point (pp) decrease in (real) oil price inflation is associated with a decline of 1.58 percent in (real) GDP four periods after the shock; a decrease in annual government revenue (as a percentage of GDP) by between 0.6 and 0.8 pp and; an addition of about 0.5 pp to government debt per year. Finally, the study discusses relative vulnerabilities, and the domestic and international policy options needed to mitigate transition cost. Aside from a handful of primarily high-income countries, most countries have little or no savings to help them cushion an inevitable steep fall in demand for their main export and source of revenue, and more than one third of countries are characterized by either low or medium levels of human development. Whereas several countries are relatively well positioned to successfully mitigate the transition cost provided urgently prioritized domestic reforms, a substantial subgroup of countries will need international assistance to avoid potentially large negative socio-economic consequences.

Cyclicality of public debt in developing countries: Does dependence on natural resources matter?

We revisit the resource curse theory, producing empirical evidence of the importance of natural resources on the cyclical orientation of public debt. Using the Driscoll-Kraay fixed-effects method and panel data from 51 developing countries for the period 1986 to 2020, we show that natural resource rents accentuate the procyclicality of public debt. However, our results suggest that the impact of natural resource endowment in procyclicality does not have the same magnitude when taking into account (i) the disaggregation of public debt, (ii) alternative measures of natural resource rent and (iii) the division of the sample into African and non-African countries. More specifically, natural resource rents amplify the procyclicality of external public debt more than domestic public debt. In addition, we find that while coal and forest rents have no effect on the cyclical orientation of public debt, mineral and especially oil rents do amplify the procyclical nature of public debt. Finally, our results show that the accentuation of the procyclical nature of public debt generated by the interaction between the economic cycle and natural resource endowment is more pronounced in African developing countries than in non-African developing countries. Our results shed new light on the Dutch disease hypothesis, and have relevant policy implications for governments in resource-rich countries wishing to move towards counter-cyclical fiscal interventions.

Sustainable Economic Development in China: Balancing Growth and Environmental Concerns

Purpose: Over the last three decades, China’s economy has grown remarkably, ranking second in the world among all countries. China’s market-oriented policies, which give priority to economic development, are credited with the country’s economic boom. China’s remarkable economic growth in recent years has had a significant effect on the environmental balance of the nation. Presently, Chinese authorities must address environmental issues without impeding the nation’s progress. Even though China’s economy has expanded quickly since reforms and the opening up, the country’s environmental degradation issue has gotten more serious.Examine China’s current strategies for economic development and their effects on environmental sustainability and economic growth.The dynamic connects between the highlighted factors (renewable consumption of energy, economic expansion, oil rent, and resources of all kinds) and the increase in greenhouse gas emissions—a proxy for environmental sustainability—is examined in this article using China as an example.The findings of an empirical study using every year data from 2018 to 2022 and the auto-regressive distribution lag limits technique point to the existence of a long-run equilibrium link between each of the variables highlighted and greenhouse gas emissions. Specifically, since they have a negative impact on greenhouse gas emissions, the usage of renewable energy sources and petroleum rents contribute to ecological sustainability.In conclusion, China’s commitment to sustainability may benefit from some of the remedies this paper’s results suggest. This study demonstrates the useful use of New Structure Economy in a crucial industrial area in China, adding to the body of knowledge on sustainability in the environment and economic development.

Monetary Policy, Oil Rents, Exchange Rate and Consumer Prices Nexus: A Case Study of Pakistan

This research examines the effects of monetary policy in the form of nominal money supply, economic growth, exchange rate, and oil rents on domestic prices for Pakistan's economy. By taking an annual data series, this research reports evidence of mixed integrated order of the data series. The estimates of the ARDL bounds test suggest that consumer prices have a long-run cointegrating relation with its factors. The findings also highlight that the money supply supports the causality thesis, indicating that when the money supply stretches, it accelerates domestic prices. Moreover, it is also exposed that domestic output, exchange rates, and oil rents have significant and appreciating effects on consumer prices in both time spans. These results are robust to the diagnostics used in this research ensuring the reliability of the results. Based on these results, money supply and exchange rate should be controlled by the policymakers in such a way that it should not allow domestic prices to rise. Moreover, an attempt should be made via which increase in domestic out, and oil rents should remain greater than the increase in prices.