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The impact of natural resource depletion on energy use and CO2 emission in Belt & Road Initiative countries: A cross-country analysis

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  • Hussain, Jamal
  • Khan, Anwar
  • Zhou, Kui

Abstract

We employ STIRPAT (stochastic impact of regression on population, affluence, and technology) model to investigate the impact of natural resource depletion on energy use and carbon dioxide emissions for a panel of 56 “Belt & Road Initiative” (BRI) countries over 1990–2014. We utilize the Augmented Mean Group (AMG) panel estimator and Common Correlated Effects Mean Group (CCEMG) estimator for estimating our model. The results indicate that increasing natural resource depletion increases CO2 emissions and energy use, which shows that a 1% increase in natural resource depletion for our sample of BRI countries will increase CO2 emissions and energy use by 0.0286% and 0.0117%, respectively. To check the causal relationship among our variables, we employ the VECM Granger causality test. The causality results underscore feedback hypothetical links among CO2 emissions, energy use, economic growth, natural resource depletion, urbanization, and trade openness in the long run. Our results show a significant cross-sectional dependence and heterogeneity.

Suggested Citation

  • Hussain, Jamal & Khan, Anwar & Zhou, Kui, 2020. "The impact of natural resource depletion on energy use and CO2 emission in Belt & Road Initiative countries: A cross-country analysis," Energy, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:energy:v:199:y:2020:i:c:s0360544220305168
    DOI: 10.1016/j.energy.2020.117409
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    Natural resource; Energy use; CO2 emissions; AMG; CCEMG; BRI countries;
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