Resource Curse Research Articles

The Impact of Renewable Energy Development on Regional Carbon Emission Reduction: Based on the Spatio-Temporal Analysis of 30 Provinces in China.

The development of renewable energy has become an important means for the world to cope with climate change, ensure energy security, and protect the ecological environment. Using the panel data of 30 provinces in China from 2013 to 2021, this study used the mediating effect model and the spatial Durbin model (SDM) to explore the mechanism and spatial effects of renewable energy development on China's regional carbon emission reduction. The results show that: (1) Renewable energy development can help to reduce carbon emission intensity. (2) The results of mechanism analysis show that renewable energy development reduces carbon intensity by improving energy structure, promoting industrial structure optimization, and industrial structure upgrading. (3) The development of renewable energy can not only reduce the local carbon intensity but also have a positive spillover effect on the carbon intensity of neighboring regions. (4) Further analysis shows that the long-term effect of renewable energy development on carbon emissions is greater than the short-term effect. At the same time, the heterogeneity analysis shows that compared with the Yellow River basin, the development of renewable energy has a significant carbon emission reduction effect in the Yangtze River Economic Belt region. Energy-rich areas fall into the "resource curse", which makes the carbon emission reduction effect of renewable energy development not significant. This paper has certain reference significance for promoting reasonable decomposition between regions and formulating renewable energy development policies.

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

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

Does fintech positively moderate the impact of mineral resources on green growth? Role of economic policy uncertainty in OECD economies

Resource curse remains a dilemma for the resource-endowed OECD countries, whereas consistent mineral resource utilization impedes green growth. However, fintech innovations are imperious in transforming the economic landscape and resource curse paradox. Therefore, our study elucidates the impact of Fintech, economic policy uncertainty (EPU), and mineral resource rents on green growth. For empirical exploration, the generalized method of moment (GMM) was employed from 2014 to 2022 in selected OECD countries. The empirical outcomes reveal that mineral resource rents hinder green growth, affirming the resource curse hypothesis. Similarly, EPU exerts negative impacts on green growth. On the other side, Fintech is a stimulator of green growth, demonstrating a positive linkage. The moderation covariates of fintech measures with the mineral industry have immense potential to reduce adverse economic effects and significantly promote green growth. The alternative estimator echoes identical findings with different magnitudes and signs to affirm estimated outcomes. This research suggests valuable policy implications for OECD economies to disseminate fintech adoption in curbing harmful economic uncertainty and resource erosion in the green transition.

Coupling efficiency and spatial dynamic evolution of urban water–energy–food in China–A case of evidence from 94 cities

Quantifying and interpreting the water–energy–food (WEF) nexus is critical to achieve the sustainable development of urban resources. The mismatch between urban water, energy and food allocations is a prominent problem that is particularly acute in the Yellow River Basin (YRB) of China. In this study, models for the WEF coupling degree and coupling efficiency were constructed. The WEF coupling efficiencies of the 94 cities in the YRB from 2011 to 2020 were quantified using a data envelopment analysis (DEA) model. On this basis, the spatial distribution characteristics and evolutionary trends of different urban WEF coupling efficiencies were analysed and explored using an exploratory spatial data analysis (ESDA) model and a parametric kernel density estimation model. The results show that the energy subsystem constrain the development of the WEF nexus, and the food subsystem, in turn, regulates the development of the WEF nexus. In some years, the phenomenon of ‘resource curse’ occurred, in which the WEF coupling degree increased while the coupling efficiency decreased. Overall, the values of the urban WEF coupling efficiency were low, ranging from 0.5300 to 0.6300, which is not effective. Spatial clustering was detected in the urban WEF coupling efficiency. The clustering types were ‘high–high’ clustering areas in less developed regions and ‘low–low’ clustering areas in developed regions. The two clusters and the median contiguous group had different evolutionary trends. Both efficiency and polarisation increased in the high-clustering group, efficiency improved in the low-clustering group, and a new efficiency pole was formed in the median contiguous group. Among the three grouped cities, we discuss the potential of policies such as cross-city cooperation, intra-city multi-sectoral cooperation and cultivating new central growth cities to improve the WEF coupling efficiency in the YRB.

How green investment significantly relieves resource curse? A new perspective from fiscal decentralization

Harsh weather, climate change, and pandemics have wreaked havoc on global economies. Evidently, green investment has become an imperative tool for realizing sustainable economic development in response to these calamities. This article adopts the regression discontinuity design (RDD) as well as stage heterogeneity influential mechanism analysis to study the nonlinear form and potential mechanisms of green investment in mitigating the ecological resource curse, based on provincial panel data of China from 2006 to 2020. The study findings indicate an inverted U-shaped curve in the linkage between green investment and pollution emission, with a turning point at 4.98. Moreover, the analysis of heterogeneity mechanisms reflects that local fiscal decentralization and resource dependence initially impede the effect of green investment on mitigating the ecological resource curse. Nonetheless, as green investment matures, the curse is primarily alleviated through substantive innovation in eco-friendly practices. By investigating the regional and resource endowment heterogeneity, it is obvious that inland and non-resource-based regions are more inclined to benefit from green investment in alleviating the environmental resource curse. Thus, this paper proposes certain policy recommendations tailored to regional characteristics, such as fostering a greener consumption mindset and minimizing industry reliance in resource-based zones.

Does export underreporting contribute to the resource curse?

Since the 1970s, resource-exporting countries have tended to develop more slowly, a phenomenon known as the resource curse. The literature suggests that governance problems and extractible resources exacerbate the curse by diverting talent, effort, and funds into conflict, corruption, and patronage. In this paper, I argue that another mechanism may be export underreporting and capital flight, which can reduce savings, fiscal revenues, and foreign exchange. I present an economic model of underreporting and show that primary export revenues, fiscal revenues, and GDP are 30–50 % less responsive to global commodity prices in autocratic countries. The effects are concentrated in extractive industries and not restricted to oil exporters. The facts that developing countries tend to tax the primary sector and the incentive to underreport should be larger in autocracies − where firms are less accountable to citizens − suggest that primary exports may be underreported, which might contribute to the resource curse.

Revisiting natural resources and economic complexity nexus: Does financial development matter in developing countries?

There is a large body of work documenting the non-consensual effects of natural resources on economic complexity. Despite this extensive literature, little is known about the mediating effect of financial development on the above relation. This paper focuses on assessing the effect of financial development on natural resources and economic complexity nexus. The study uses the System Generalized Method of Moments in a sample of one hundred (100) developing countries over the period of 1995–2020. The results show that natural resources reduce economic complexity; translating the curse of natural resources into economic complexity. However, financial development reduces this curse and thus improves the effect of natural resources on economic complexity. The results remain robust to several robustness and sensitivity tests.

Research on the impact of digital economy on green total factor productivity: theoretical mechanism and multidimensional empirical analysis

The digital economy (DE) is emerging as a crucial driver of economic growth and an effective tool for alleviating resource and environmental pressures, thereby evolving into a significant force in facilitating green transformation. This study elaborates on the theoretical mechanism of the impact of DE on green total factor productivity (GTFP), and conducts multidimensional empirical tests using panel data from 284 cities in China. The main findings are as follows: (1) DE exerts significant positive direct, indirect, and spatial spillover effects on GTFP, signifying its growing role as a robust driver of GTFP. Notably, technological innovation emerges as a key mediator of DE’s impact on GTFP. (2) The impact of DE on GTFP exhibits a distinct pattern: initially pronounced, gradually diminishing, and then rebounding as DE progresses. (3) DE tends to exacerbate, rather than alleviate, the development divide and resource curse, especially in underdeveloped and resource-rich cities where its benefits are constrained. (4) Government behavior is pivotal in influencing DE’s impact on GTFP. Supportive policies and strict environmental regulations are critical in harnessing DE’s positive contributions to GTFP. This study lays a scientific foundation for leveraging the “green attributes” of DE and offers insights into bridging the developmental disparities among cities.

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.

A re‐assessment of the Resource Curse Hypothesis in top resource‐rich developing countries: Fresh insights using method of moments quantile regression

AbstractWhether mineral and natural resources (NR) are a blessing or a curse for economic growth (ECON_G) is still a debatable issue among scholars and policymakers. Therefore, the primary goal of the present study is to investigate the relationship between mineral resources (MR), NR, and ECON_G to re‐assess the “Resource Curse Theory.” For this purpose, a panel of six top resource‐rich developing economies (China, Brazil, Russia, Iran, the Republic of the Congo, and Saudi‐Arabia) over the 1995 to 2021 period is analyzed using dynamic ordinary least square, fully modifies ordinary least square and method of moments quantile regression approaches. The basic findings of the above‐mentioned techniques reveal the significantly positive impact of both NR and MR on ECON_G in the selected economies. The estimation outputs of the method of moments quantile regression also reveal the significant positive contribution of these resources in ECON_G at all quantiles (0.10–0.90). Thus, the study finds that the Resource Bless Hypothesis is valid as both NR and MR support the absence of the Resource Curse Hypothesis in these countries. Furthermore, the findings of the Granger Causality test reveal that bidirectional causal association is present between NR and ECON_G and MR and ECON_G. The study recommends that policymakers and governments in the resource‐rich countries should promote the development of the mining sector and sustainable resource extraction by properly monitoring the resource sector. More importantly, implementing resource governance initiatives are needed to be prioritized for transforming resources as a blessing for the studied countries.

Africa’s critical minerals can power the global low-carbon transition

The global shift towards low-carbon economies and societies is expected to result in a substantial surge in the demand for critical minerals. Endowed with at least a fifth of the world’s reserves in a dozen minerals, Africa can play a pivotal role in facilitating the global transition away from fossil fuels. In this paper, we argue that, for this to happen, Africa needs to act now to convert its natural assets into sustainable comparative advantages for a resource-based industrialisation. This will require proactive measures to ensure strict compliance with the highest standards of governance and transparency, as well as to uphold social values such as safeguarding basic rights of affected individuals and communities and sound environmental management to avoid falling into a new resource curse. This also requires a renewed global raw material diplomacy in which Africa manages the geopolitics of critical minerals, identifying strategic global alliances to unleash economic potential, create local content in the mining sector, develop domestic productive capacity, and foster sustainable development.

Resource booms and the energy transition: What can we learn from Dutch economists' response to the discovery of natural gas reserves (1959–1977)?

Geopolitical instability and climate change are about to bring about large-scale energy reconfigurations. Recent discoveries of fossil fuel potential echo important historical episodes, starting with the finding of natural gas reserves in the Netherlands in 1959, which gave birth to the notion of Dutch Disease, in reference to the macroeconomic structural readjustments that followed the resource boom. Recently, the economic literature on whether such a boom might be a blessing or a curse for a country has been growing. What has not received attention so far is the attitude of Dutch economists in the 1960s and 1970s and the lessons to be drawn from them in today's economic research. This article explores how they understood the gas boom, how they anticipated its effects, and the role they played in shaping Dutch energy policies. We show that the 1960s were a parenthesis, and that energy optimism has historically been more an exception than a rule. In situ economists correctly anticipated some but not all of the transmission channels of the resource boom. These results are insightful for the 21st century, as they not only allow for historicizing the concept of the resource curse but also provide lessons for macroeconomic policies in the context of the energy transition, especially in countries endowed with fossil fuels and mineral resources.

Does industrial sustainable development policy act as a booster for urban economic growth? Evidence from China's eco‐industrial parks

AbstractEco‐industrial parks (EIPs), which reduce pollution and transform the industrial sector to be more environmentally benign, represent the industrial sustainable development policy. However, little research has concentrated on its economic effects. We explore the impacts of 93 national demonstration EIPs on urban economic development using time‐varying difference‐in‐difference, based on panel data from 330 Chinese cities from 1995 to 2018. We show that EIPs have contributed to an economic growth range between 7.47% and 7.61% in pilot cities, with robustness considering price deflators and alternative satellite data on night lights. Structure, technological, and scale effects help explain the mechanisms. Further estimates show that EIPs have had mixed success in addressing the resource curse, where they only alleviate the curse for growing resource‐based cities. We argue that the industrial sustainable development policy not only conveys significant economic benefits but also holds the potential to address the resource curse.

Quantifying the Impact of Natural Resources on Sustainable Growth in Developing Economies: Evidence from Panel Nonlinear ARDL Technique

The main purpose of current research is to analyze the impact of natural resource exploration on sustainable growth in developing economies. Annual panel data of 57 developing countries from 2000 to 2021 has been used for research analysis. First, this study uses a simple Panel Autoregressive Distributive Lag (ARDL) estimation technique to examine the long-run and short-run link among the variables. The results depict that in the long run natural resource exploration has a significant negative impact on sustainable growth. This finding supports the presence of the resource curse hypothesis. Besides this, the present study decomposes the policy variable (mining contribution index) into its two shocks i.e. positive shock and negative shock by applying a panel non-linear ARDL approach. The long-run outcomes depict that both the coefficients of partial positive and partial negative sums of natural resource rents are negative and significant. Furthermore, the research outcomes explain that financial openness and international trade have a substantial and positive impact on sustainable progress. The policy implications for current research are to avoid bad rent-seeking behaviors and to escape from non-productive activities to achieve sustainable development. Furthermore, there is a dire need to adopt and support environmentally friendly policies.

Quantifying the Impact of Natural Resources on Sustainable Growth in Developing Economies: Evidence from Panel Nonlinear ARDL Technique

The main purpose of current research is to analyze the impact of natural resource exploration on sustainable growth in developing economies. Annual panel data of 57 developing countries from 2000 to 2021 has been used for research analysis. First, this study uses a simple Panel Autoregressive Distributive Lag (ARDL) estimation technique to examine the long-run and short-run link among the variables. The results depict that in the long run natural resource exploration has a significant negative impact on sustainable growth. This finding supports the presence of the resource curse hypothesis. Besides this, the present study decomposes the policy variable (mining contribution index) into its two shocks i.e. positive shock and negative shock by applying a panel non-linear ARDL approach. The long-run outcomes depict that both the coefficients of partial positive and partial negative sums of natural resource rents are negative and significant. Furthermore, the research outcomes explain that financial openness and international trade have a substantial and positive impact on sustainable progress. The policy implications for current research are to avoid bad rent-seeking behaviors and to escape from non-productive activities to achieve sustainable development. Furthermore, there is a dire need to adopt and support environmentally friendly policies.

Expression of concern: Resource curse hypothesis and economic growth: A global analysis using bootstrapped panel quantile regression analysis [Resources Policy, Volume 85, Part A, August 2023, 103790]

Expression of concern: Resource curse hypothesis and economic growth: A global analysis using bootstrapped panel quantile regression analysis [Resources Policy, Volume 85, Part A, August 2023, 103790]

The race for critical minerals in Africa: A blessing or another resource curse?

There is currently an exponential growth in the global demand for critical minerals, particularly lithium, to meet clean energy and decarbonisation objectives. However, sustainable supply of these minerals is at risk due to declining ore grades, available extraction and processing technologies, socio-environmental concerns, and geopolitical challenges. Africa hosts substantial critical minerals resources, and the continent is currently being positioned as a major global player in the critical minerals supply chain. As a result, there is a rush for Africa's critical mineral resources through investment in exploration activities and license acquisition by foreign mining companies. Drawing on the case of lithium mining in Africa, we analysed the urgency claims of critical minerals in the African context and assessed the inherent socio-ecological impacts. We found that the urgency claims of critical minerals largely serve the geostrategic and economic interests of western countries and China. The rush for Africa's critical minerals is producing significant socio-ecological impacts, including driving loss of rich biodiversity, displacement of communities and breeding new forms of illegalities in the resource sector. Based on our findings, we argue that the current race for Africa's critical mineral resources does not serve the interest of Africa and it is likely to create adverse long-term socio-ecological impacts rather than benefits for the continent unless appropriate sustainable measures, including strategic planning, are carefully considered, and fully implemented. Our findings have implications for policies seeking to promote sustainable and responsible mining in Africa, and elsewhere with similar challenges.

A visual exploration of resource curse in East Kalimantan

Kalimantan has emerged as a primary hub for global coal and palm oil production, particularly in East Kalimantan. This visual essay delves into the concept of the resource curse, examining its potential negative impact on local health and communities, given the heavy reliance on coal and palm oil for economic and infrastructure development. Employing Autophotography during fieldwork research in 2023, the essay presents a series of photographs to prompt discussion and reflection on critical engagement with this ongoing discourse. It underscores Autophotography's role as a critical approach to narrating local narratives and knowledge within a defined conceptual framework aimed at disseminating it to a wider audience. This highlights the potential of visual essays in generating and representing knowledge, thus contributing to knowledge production.

Spatial-Temporal Heterogeneity and Decoupling Mechanism of Resource Curse, Environmental Regulation and Resource Industry Transformation in Post-Development Areas: Evidence from Inner Mongolia, China

Resource curse and environmental regulation are the key bottlenecks that hinder the sustainable development of the resource industry. A reasonable assessment of the decoupling relationship between resource supply, environment regulation and resource industry transformation is helpful to promote the decision-making of industrial restructuring in post-development regions. Taking Inner Mongolia Autonomous Region of China as the research object, panel data related to resources, environment and industry from 2010 to 2021 are selected to evaluate the spatial and temporal evolution of regional resource supply security, environmental regulatory pressure and resource industry transformation efficiency, measure the decoupling index among the factors, and use geographic detector technology to identify the constraints affecting factor decoupling. The results show the following: (1) the resource curse effect of Inner Mongolia is not significant, and some resource industries have prominent advantages; (2) the security of resource supply and the transformation efficiency of the resource industry show overall upward trend, the pressure of environmental regulation is basically balanced, and the development level of factors in resource-endowed regions and central cities is relatively high; (3) the spatial and temporal evolution of the decoupling relationship between resource supply, environmental regulation and resource industry transformation is uncertain, and the resilience of regional economic and social governance is poor; (4) resource endowment and resource industry advantages are the key that restricts the decoupling of factors, and the cumulative effect of ecological governance is likely to lead to the randomness of the decoupling of environmental regulation and resource industry transformation. In addition, this study suggests that the post-development areas should pay attention to the classification of resource industry relief, trans-regional economic and social collaborative governance and special resources exploitation.

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.