Total Natural Resource Rents Research Articles

Energy Security and Women’s Empowerment: A Generalized Method of Moments Approach from a Global Perspective

The importance of energy security is emphasized in Goal 7 of the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda to guarantee that everyone has affordable, dependable, and contemporary energy access. In addition to transforming human life, whole economies, and even the planet, sustainable energy offers a chance for a better future. The absence of energy security impacts serious health problems, education, and household difficulties. Research on energy security has emphasized various angles worldwide. However, investigations of the impact of energy security on women’s empowerment are still scant. This study thus investigates the relationship between energy security and women’s empowerment (WE) in 167 countries from 2002 to 2021, as well as the influence of urbanization development levels on this nexus. Moreover, this study explores the variation in women’s empowerment between geographical regions by referencing the MENA, OECD, and SAARC countries. A two-step system GMM was used to achieve the objectives of this research. The findings show first that renewable energy availability has a significant effect on WE worldwide. Secondly, in terms of energy security, the variables total availability of natural resource rents and renewable energy both have a positive impact on women’s empowerment in the MENA, while in the OECD and SAARC countries, they have an indirect link with WE. Third, the integrating effect of total natural resource rents with urbanization significantly affects WE in all five models. Fourth, we used access to electricity to represent resource affordability. Unexpectedly, the results show its negative and significant association with WE. Fifth, in terms of energy security, both energy availability and affordability favor WE in OECD countries. Finally, the coefficient of integration of access to electricity and urbanization shows a positive and significant association with WE in the OECD, MENA, and SAARC regions. However, it is noteworthy to mention that access to electricity alone does not influence WE worldwide. Additionally, a series of tests confirm the robustness of the results. This research provides insight into the development and implications of energy security-related women’s empowerment policies.

Do the Energy-Related Uncertainties Stimulate Renewable Energy Demand in Developed Economies? Fresh Evidence from the Role of Environmental Policy Stringency and Global Economic Policy Uncertainty

Despite earlier research on green energy, there is still a significant gap in understanding how energy-related uncertainties affect renewable energy consumption (REN), especially in developed nations. Thus, this study explicitly looks into how the energy-related uncertainty index (EUI) can promote (or diminish) REN in sixteen wealthy nations between 2000 and 2020. Furthermore, we attempt to specify the factors of REN and explore whether environmental policy stringency (EPS) and global economic policy uncertainty (GEPU) could help moderate (or intensify) the EUI-REN nexus. To achieve this, we employ different panel data methods. The results underscore that the EUI significantly impacts REN, denoting that higher uncertainties related to energy markets lead to promoting REN. Additionally, the (EUI × EPS) underlines that EPS has a favorable role in increasing the positive effect of the EUI on REN in sample developed countries while (EUI × GEPU) has a detrimental effect. Remarkably, the findings underline that the effect of the EUI on REN is more positive in high EPS countries and that the positive effect of the EUI is more moderate when GEPU is high. The findings also underscore that the development of the financial market, FDI, personal remittances, and EPS positively stimulate REN whereas CO2, total natural resources rents, economic activity, and GEPU have a detrimental impact. The results are robust, and authorities and policymakers are advised to implement a wide range of policy proposals to accomplish sustainable development goals (SDGs) 7 and 13.

Multifaceted natural resources and green energy transformation for sustainable industrial development

Climate change is the most phenomenal challenge to humanity, and its roots are intervened with unsustainable industrialization, exercising overexploitation of natural resources. Therefore, the departure from non-renewable to renewables has become inevitable, though thought-provoking. In this respect, we explore how green energy transformation moderates the impacts of multifaceted natural resources on sustainable industrial development in the presence of other covariates involving technological progress, financial development, and economic progress. We compiled data from Group of Seven (G-7) members over the 1995−2018 period and applied panel quantile regression (PQREG) to capture the effects across varying levels of quantiles of sustainable industrial development. Results revealed a positive role of natural gas rents, while coal, forest, and total natural resource rents contributed adverse implications for sustainable industrial development. However, the green energy transformation proved to be the game changer because it not only directly induced sustainable industrial development improvement but also turned the unfavorable effects of coal, forest, and total natural resources into favorable ones by interacting with those multifaceted natural resources. Technological, financial, and economic progress supported sustainable industrial development in G-7 nations, particularly in members with existing middle and upper scales of sustainable industrial development. These findings are robust enough when subjected to different estimation tools. In light of these outcomes, the interaction between green energy transformation and natural resource policy is inevitably critical to attaining natural resource efficiency for sustainable industrial development. Therefore, it is imperative to establish a close policy coordination between advancing green energy technology and allocating natural resource revenue to achieve sustainable development goals (SDGs), with a particular emphasis on SDG-7 and SDG-13.

The Effect of Green Bonds on Natural Capital Protection: Worldwide Evidence

The continued destruction of nature, including the degradation of natural capital and biodiversity, threatens ecosystem services and human well-being. Natural capital is crucial for providing the conditions necessary for human survival and ecosystem services. Without protecting natural capital, this degradation will have lasting effects on current and future generations. Existing studies increasingly show that Green Bonds can finance environmental projects effectively, but few have examined their impact on natural capital protection. This study investigates the effect of Green Bonds on natural capital protection globally, using IMF Climate Data and World Bank data from 2019 to 2022. By applying the Green Investment theory and quantile-panel regression analysis, the results show that Green Bonds significantly enhance natural capital protection at the 25th and 50th percentiles. This indicates that countries can improve their natural capital protection through the issuance of Green Bonds. Moreover, the study finds that renewable energy positively correlates with natural capital protection, while population growth and total natural resource rents have negative impacts. Hence, this study recommends that governments prioritize the issuance of Green Bonds to fund environmental initiatives.

Natural resource rents and financial inclusion nexus: Evidence from Africa

A significant gap in total natural resources wealth and financial inclusion studies on the African continent stems from their impact and variation. To address these deficiencies, this study investigates the effect of total natural resource rents on financial inclusion, employing data from 27 African economies from 2004 to 2019. This study uses the most recent panel estimators, causality test and variance decomposition analysis for accuracy and reliability. Findings reveal that total natural resources wealth and economic progress significantly reduces financial inclusion, while fossil and renewable energy promote financial inclusion. Moreover, financial globalization had an insignificant outcome on financial inclusion. The causality test revealed bi-directional causation between financial inclusion in renewable energy and financial inclusion in economic progress. Again uni-directional causation from financial inclusion to fossil energy and financial inclusion to natural resources wealth. At the same time, a neutral causal effect was found from financial inclusion to financial globalization. Regarding variations, financial inclusion had the highest effect on natural resource rents. Our findings grasp new insight into financial inclusion in Africa, and policymakers are advised to support natural resources rent by directing its impact into the economy's real sector.

How do natural resource rents and productive capacity affect carbon emissions? Evidence from developed and developing countries

This study re-examines the determinants of CO2 emissions, considering 36 developing and developed economies from 2000 to 2020. The study uses a new indicator of economic cycles, i.e., the productive capacity index. The panel models also control for the impacts of geopolitical risk, globalisation, renewable energy share, and total natural resource rents. After diagnosing the data for necessary panel diagnostics, the Westerlund cointegration test indicates a significant long-run relationship. In this context, two-step System Generalised Method of Moments (SGMM) estimations demonstrate the positive effects of geopolitical risk, productive capacity index, and natural resource rents on per capita CO2 emissions. In contrast, globalisation and the share of renewable energy reduce CO2 emissions. The Panel-Correlated Standard Errors (PCSE) and the Feasible Generalised Least Squares (FGLS) confirm the long-run reliability of these baseline findings. Policy implications concerning the issue of rising CO2 emissions are also discussed.

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

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

Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach

In this study, we aim to investigate the effects of remittance on sustainable economic development in 52 developing and emerging economies from 1996 to 2021. The study uses other variables such as real GDP per capita, total natural resource rents, globalization, and foreign direct investment. To achieve the mentioned objective, we apply a series of second-generation panel estimation approaches. These include CIPS unit root, Westerlund cointegration, cross-sectional augmented autoregressive distributed lag (CS-ARDL), and robustness using augmented mean group (AMG) and common correlated mean group (CCEMG). These methods are useful provided they are robust towards cross-country dependencies, slope heterogeneity, endogeneity, and serial correlation, which are disregarded in the conventional panel estimations. The empirical findings indicate that remittance accelerates sustainable economic development. Additionally, real GDP per capita and globalization also positively contribute towards sustainable economic development. However, total resource rents deteriorate sustainable economic development. This study offers key policy implications based on the empirical findings for the developing and emerging economies.

Natural resource‐driven prosperity: Unveiling the catalysts of sustainable economic development in the United States

AbstractAchieving economic progress hinges upon the active and strategic utilization of a nation's inherent resources in economic and financial endeavors. This comprehensive study investigates the intricate dynamics influencing the economic development of the United States, employing a time series dataset spanning from 1991 to 2022. Key factors including total natural resource rents, domestic capital formation, the ‘financial risk index (FRI),’ and the count of patents filed by both domestic and foreign investors. Rigorous statistical analyses, including the ‘Modified Dickey‐Fuller’ test and ‘Bayer‐Hanck cointegration’ strategy, were employed to extract meaningful insights from the data. Addressing concerns related to endogeneity and serial correlation, advanced techniques such as ‘Dynamic Ordinary Least Squares’ and ‘Fully Modified Ordinary Least Squares’ were applied. The findings illuminate the pivotal roles played by natural resource rents and domestic capital formation in propelling sustainable economic development in the United States. Notably, this study sheds light on the positive contributions of both domestic and foreign patent filings to the nation's economic trajectory. Furthermore, enhancements in the FRI are identified as catalysts for fostering sustainable economic growth. In essence, our research contributes to the existing body of knowledge by offering nuanced insights into the multifaceted influences shaping the economic landscape of the United States. The results not only underscore the significance of effective resource management and capital formation but also emphasize the positive impact of innovation, represented by patent filings, and improvements in the FRI on the nation's journey towards sustainable economic growth.

Tourism development and ecological footprint indicators in island destinations: evidence from the members of the alliance of small island states

ABSTRACT Considering the crucial debates on sustainable development it is significant to understand the link between the development of tourism in small island countries and the ecological footprint. However, to date, little knowledge is available about the contribution of tourism to the EF of small island states. Therefore, the study aims to investigate the effects of international tourism, tourism revenues, total natural resource rents, urbanisation, energy intensity, and per capita gross domestic product (GDP) on ecological footprint among the Members of the Alliance of Small Island States (AOSIS). The results of our study provide new empirical results on the impact of tourism, economic growth, energy intensity, natural resource rents, and urbanisation on the ecological footprint of the 7 AOSIS member countries. Cross-sectional dependency and cointegration test results are positive for the variables of interest. Our estimates based on CCEMG and AMG regressions showed which factors contribute to environmental degradation at the AOSIS and country levels.

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

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

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

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

Is there a relationship between economic growth and natural resource commodity price volatility? Evidence from China

The volatility of commodity prices of natural resources such as oil and coal is closely related to the economic growth of a country. This study examines the volatility of economic growth and natural resource commodity prices in China during 1980–2020 and the causal relationship between them using the wavelet power spectrum and wavelet coherence in the wavelet method. The results reveal the following. (1) The wavelet power spectrum uncovers strong fluctuations in economic growth and natural resource commodity prices, both susceptible to crisis events. (2) The wavelet coherence demonstrates a significant causal relationship between economic growth and natural resource commodity price volatility. Specifically, (a) there is a notable negative correlation between economic growth and WTI crude oil prices and coal rents. (b) There is a two-way causal relationship between economic growth and WTI crude oil prices and coal rents, and a one-way causal relationship between economic growth and total natural resource rents and oil rents. Finally, using frequency-domain causality tests as a robustness check confirmed a long-term causal relationship between economic growth and natural resource commodity prices. This study clarifies the relationship between economic growth and natural resource commodity price volatility and provides a scientific basis for formulating natural resource and economic policies.

Determinants of Military Spending in Africa: Do Institutions Matter?

Abstract This paper focuses on the determinants of military spending in Africa by considering the role played by institutions. With data obtained between the years 1996–2019, the Driscoll and Kraay fixed effects, the Generalised Method of Moments (GMM), and the Bayesian Model Averaging (BMA) estimators are used. The findings suggest that government size, trade freedom, economic risk, and political risk decrease military spending, whereas government stability and military involvement in politics are found to raise it. Using alternative institutional variables, we find that corruption, government effectiveness, political stability, regulatory quality, the rule of law, and voice and accountability significantly diminish military spending in Africa. In addition, concerning the economic determinants, the results reveal that trade openness and total natural resource rents reduce military spending, while GDP per capita, inflation, and foreign debt stocks increase it. Looking at strategic determinants, arms imports, urban population, and ethnic tensions positively affect African military expenditures. Robustness checks show that these results change once regional specificities are considered. The study concludes that institutional factors could be an engine for evolution in Africa’s military spending.

Natural resources and financial development: Role of corporate social responsibility on green economic growth in China.

While natural resource and financial growth have been researched extensively, the impact of corporate social responsibility on green economic growth through the incorporation of corporate regulations has received less attention. Empirical conclusions are supported by a balanced panel of data collected annually on resource-rich countries in China between 1992 and 2018. Multiple econometric issues, such as the existence of heterogeneity among the selected countries, can be tackled with the help of the PMG-ARDL method. There is evidence of cointegration between the variables according to the Johansen Fisher Panel Cointegration Test and the Kao Test. The findings of the PMG-ARDL suggest a favorable long-term relationship between resource income and public debt, but a negative short-term relationship. Public debt sustainability in the panel nations is threatened by their over-reliance on total natural resource rents if efficient fiscal and financial administration reforms are neglected. The Vector Error Correction Model (VECM) used in this panel establishes a causal relationship between available resources and the level of state debt. There is empirical data to back up the fiscal curse theory. If regulations are not in place to protect natural resources, they could impede economic development. The financial resource curse may be eased if China adopted more business-friendly regulations. Assuming this condition is met, policy recommendations for sustaining natural resource rent-related gains in economic development may be developed.

Energy supply from oil and gas, mineral depletion, and total natural resource rents: Impact of oil equivalent energy use CO2 intensity

Oil and gas have traditionally been the primary energy sources used to fuel and power the world. However, due to the finite nature of these resources, the depletion of minerals and other natural resources is a growing concern. In addition, the impact of oil-equivalent energy use CO2 intensity on the environment is significant. This paper examines the nexus of energy supply from oil and gas, mineral depletion, and total natural resource rents in the United States from 1972 to 2016, using CO2 intensity as moderating variable. To this end, a time-series analysis is employed to analyze the data from the World Development Indicators. The parameters associated with the long-run dynamics suggest that the variables in the model can be used to explain the long-run dynamics of the economy. The results also suggest that the model can be used to forecast future economic developments. Electricity production from oil and mineral depletion is positively associated with natural resources. Electricity production from natural gas and CO2 intensity is negatively associated with natural resources in the United States. In order to reduce mineral depletion and protect natural resources, the United States should enact policies that consider the environmental and economic impacts of mining. These policies should include restrictions on the number of minerals that can be extracted and measures that incentivize conservation and sustainable mining practices. Additionally, the government should invest in research and development focusing on alternative sources of minerals and new technologies that can reduce the amount of minerals extracted from the earth.

The effect of natural resources rents on human development in selected African countries

AbstractThis research analyses the effects of natural resource rents on human development in selected African countries. It focuses on a panel of 41 countries and covers the period 1996–2019. We used the ordinary least squares, quantile regression, and the two‐step system generalized method of moments (GMM) estimates. The results show that total natural resource rents have a negative effect on human development. However, this negative effect is mitigated by food imports, which ensure food security for the countries concerned. Furthermore, taken individually, the effect of natural resource rents on human development is differentiated according to their type: forestry and natural gas rents have a positive effect on human development while, oil and coal rents have a negative effect. After controlling for per capita income and other macroeconomic, institutional, and environmental factors, these results are robust. The results suggest better management of natural resource rents, economic diversification and industrial development, environmental protection, food security, and the investment of the natural resources rents in human capital development to ensure long‐term human development in the region.

Natural resource rents and access to finance

Broadening access to finance is among the top priorities for governments and international development organizations worldwide. This study examines the impact of natural resource rents on access to finance in financial institutions and financial markets across 109 countries from 1996 to 2020. The results of dynamic two-step system generalized method of moments estimation demonstrate that total natural resource rents hinder access to finance in financial institutions and markets, confirming the natural resource curse hypothesis. Specifically, rents from oil, coal, minerals, and forests negatively affect access to finance in financial institutions and markets, while gas rent has surprisingly a positive effect on both. Furthermore, institutional quality significantly promotes access to finance in financial institutions and markets. All aspects of institutional quality (control of corruption, government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability) positively affect access to finance except regulatory quality, which has an insignificant effect on access to finance in financial institutions. Moreover, our findings show that institutional quality significantly moderates the effect of natural resource rents on access to finance, specifically, it varies depending on whether the institutions are strong or weak, being positive in the former case and negative in the latter. The study conducts several robustness tests using additional controls, alternative measures of financial access, and sample sensitivity analysis, all of which confirm the findings. Finally, we suggest policy implications for relevant stakeholders.

Land under cereal production and environmental sustainability: Influence of total natural resources rents in the United States

Total natural resource rents have had an important influence on cereal production and environmental sustainability in the United States. The increased use of these resources has led to an increase in cereal production, as well as environmental degradation. As such, it is important to consider the impacts of total natural resource rents on cereal production and environmental sustainability when assessing the sustainability of the United States. This paper explores the impacts of land under cereal production and natural resources on environmental sustainability in the United States from 1970 to 2018. Results explain that land under cereal production, insurance, financial services, and economic growth positively correlate with the ecological footprint. In contrast, natural resources have a negative relationship with the environmental footprint. Land under cereal products, insurance, financial services, and economic growth degrades the environment while natural resources improve it. Policy implications for land under cereal production and environmental sustainability are heavily influenced by total natural resources rents in the United States. To ensure a sustainable future, policymakers must consider the environmental impacts associated with cereal production and develop comprehensive policies that promote sustainable land use and resource management.

Comprehensive evaluation of sustainable consumption towards green growth based on an interval valued Neutrosophic TOPSIS approach.

Sustainable consumption is crucial in reducing the growing pressure of environmental crises. This study proposes the Technique of Order Preference by Similarity to the Ideal Solution (TOPSIS) approach to evaluate sustainable consumption toward green growth. The proposed approach assesses criteria weights in Interval Valued Neutrosophic Sets (IVNSs) using the Method of Maximizing Deviation. The proposed method evaluates sustainable consumption for ten selected developed and developing countries, including Canada, France, Japan, China, Indonesia, Korea, Malaysia, Singapore, Thailand, and Vietnam. The evaluation process encompasses four main criteria with eight sub-criteria, namely environment (population density, CO2), energy (total natural resource rents, renewable electricity), economics (value added of agriculture, forestry, and fishing, GDP per capita), and health (fertility rate, mortality rate). The countries are ranked based on the relative closeness coefficient. The results reveal that two economic sub-criteria are pivotal in the sustainable consumption rankings. Canada emerges as the country with the highest degree of green growth, attributed to its extensive land area and potential for renewable energy. Based on the findings, this study proposes some policy implications for Vietnam, including balancing fertility and mortality rates and regulating economic growth and resource exploitation.