IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v72y2021ics0301420721001008.html
   My bibliography  Save this article

The asymmetric effect of natural resource abundance on economic growth and environmental pollution: Evidence from resource-rich economy

Author

Listed:
  • Sun, ZhiQiang
  • Wang, Qizhen

Abstract

The paper selects 30 regions of China and uses the system GMM model to verify the impact of natural resources on environmental pollution and economic growth from 2000 to 2019. The conclusions are as follows: the impact of natural resources on environmental pollution is significantly negative, passing the test at the 1% significance level, and the elasticity coefficient is −0.0483, indicating that the development of natural resources has a significant negative effect on the environment; natural resources have a significant negative effect on economic growth. The impact of is significantly negative, passing the test at the 10% significance level, and the elasticity coefficient is −0.0178, indicating that economic growth and natural resources have a significantly negative correlation, confirming the existence of China's “resource curse” effect. From the analysis of the significance level and elasticity coefficient, we see that there is a significant imbalance in terms of the impact of natural resources on environmental pollution and economic growth. The article has important reference significance for China to address the imbalance of impacts and adopt policies to mitigate the negative effects of natural resource development.

Suggested Citation

  • Sun, ZhiQiang & Wang, Qizhen, 2021. "The asymmetric effect of natural resource abundance on economic growth and environmental pollution: Evidence from resource-rich economy," Resources Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721001008
    DOI: 10.1016/j.resourpol.2021.102085
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420721001008
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2021.102085?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shahbaz, Muhammad & Shafiullah, Muhammad & Papavassiliou, Vassilios G. & Hammoudeh, Shawkat, 2017. "The CO2–growth nexus revisited: A nonparametric analysis for the G7 economies over nearly two centuries," Energy Economics, Elsevier, vol. 65(C), pages 183-193.
    2. Beckerman, Wilfred, 1992. "Economic growth and the environment: Whose growth? whose environment?," World Development, Elsevier, vol. 20(4), pages 481-496, April.
    3. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    4. Rappaport, Jordan & Sachs, Jeffrey D, 2003. "The United States as a Coastal Nation," Journal of Economic Growth, Springer, vol. 8(1), pages 5-46, March.
    5. Shahbaz, Muhammad & Shafiullah, Muhammad & Khalid, Usman & Song, Malin, 2020. "A nonparametric analysis of energy environmental Kuznets Curve in Chinese Provinces," Energy Economics, Elsevier, vol. 89(C).
    6. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    7. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    8. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    9. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    10. Kiviet, Jan F. & Phillips, Garry D. A. & Schipp, Bernhard, 1995. "The bias of OLS, GLS, and ZEF estimators in dynamic seemingly unrelated regression models," Journal of Econometrics, Elsevier, vol. 69(1), pages 241-266, September.
    11. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    12. Muhammad Shahbaz & Muhammad Shafiullah & Mantu K. Mahalik, 2019. "The dynamics of financial development, globalisation, economic growth and life expectancy in sub‐Saharan Africa," Australian Economic Papers, Wiley Blackwell, vol. 58(4), pages 444-479, December.
    13. Elissaios Papyrakis & Reyer Gerlagh, 2003. "Natural Resources: A Blessing or a Curse?," Working Papers 2003.8, Fondazione Eni Enrico Mattei.
    14. Davis, Graham A., 1995. "Learning to love the Dutch disease: Evidence from the mineral economies," World Development, Elsevier, vol. 23(10), pages 1765-1779, October.
    15. David de Ferranti & Guillermo E. Perry & Daniel Lederman & William E. Maloney, 2002. "From Natural Resources to the Knowledge Economy : Trade and Job Quality," World Bank Publications - Books, The World Bank Group, number 14040.
    16. Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
    17. Wang, Rong & Zameer, Hashim & Feng, Yue & Jiao, Zhilun & Xu, Li & Gedikli, Ayfer, 2019. "Revisiting Chinese resource curse hypothesis based on spatial spillover effect: A fresh evidence," Resources Policy, Elsevier, vol. 64(C).
    18. Sabna Ali & Syed Mansoob Murshed & Elissaios Papyrakis, 2020. "Happiness and the Resource Curse," Journal of Happiness Studies, Springer, vol. 21(2), pages 437-464, February.
    19. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    20. Wright, Gavin, 1990. "The Origins of American Industrial Success, 1879-1940," American Economic Review, American Economic Association, vol. 80(4), pages 651-668, September.
    21. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    22. Alan K. Reichert, 2007. "International Economic Growth and Environmental Pollution," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 1(1), pages 36-46.
    23. Andersson, Fredrik N.G. & Opper, Sonja & Khalid, Usman, 2018. "Are capitalists green? Firm ownership and provincial CO2 emissions in China," Energy Policy, Elsevier, vol. 123(C), pages 349-359.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Yan & Murshed, Muntasir & Sinha, Avik & Alam, Mohammad Mahtab & Khudoykulov, Khurshid, 2024. "Revisiting the resource curse hypothesis from the viewpoint of green growth: The role of Fintech as the de-cursing agent," Resources Policy, Elsevier, vol. 95(C).
    2. Njangang, Henri & Asongu, Simplice A. & Tadadjeu, Sosson & Nounamo, Yann & Kamguia, Brice, 2022. "Governance in mitigating the effect of oil wealth on wealth inequality: A cross-country analysis of policy thresholds," Resources Policy, Elsevier, vol. 76(C).
    3. Hunjra, Ahmed Imran & Bouri, Elie & Azam, Muhammad & Azam, Rauf I & Dai, Jiapeng, 2024. "Economic growth and environmental sustainability in developing economies," Research in International Business and Finance, Elsevier, vol. 70(PA).
    4. Kuang, Yunming & Lin, Boqiang, 2022. "Natural gas resource utilization, environmental policy and green economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 79(C).
    5. Li, Yi-Wen & Zhang, Wen-Wen & Zhao, Bin & Sharp, Basil & Gu, Yu & Xu, Shi-Chun & Rao, Lan-lan, 2023. "Natural resources and human development: Role of ICT in testing the resource-curse hypothesis in N11 and BRICS countries," Resources Policy, Elsevier, vol. 81(C).
    6. Ze, Fu & Yu, Wence & Ali, Anis & Hishan, Sanil S. & Muda, Iskandar & Khudoykulov, Khurshid, 2023. "Influence of natural resources, ICT, and financial globalization on economic growth: Evidence from G10 countries," Resources Policy, Elsevier, vol. 81(C).
    7. Jian, Peng & Zhengjie, Sun, 2024. "Navigating the green future: Unraveling the role of fintech, decentralization, natural resources, and monetary policy uncertainty in China," Resources Policy, Elsevier, vol. 89(C).
    8. Li, Aimin & Zhou, Shuyu, 2024. "Role of mineral-based industrialization in promoting economic growth: Implications for achieving environmental sustainability through financial management," Resources Policy, Elsevier, vol. 92(C).
    9. Li, Jiaman & Dong, Kangyin & Wang, Kun & Dong, Xiucheng, 2023. "How does natural resource dependence influence carbon emissions? The role of environmental regulation," Resources Policy, Elsevier, vol. 80(C).
    10. Liu, Yang & Wang, Jianda & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "How does natural resource abundance affect green total factor productivity in the era of green finance? Global evidence," Resources Policy, Elsevier, vol. 81(C).
    11. Ahmad, Munir & Wu, Yiyun, 2022. "Natural resources, technological progress, and ecological efficiency: Does financial deepening matter for G-20 economies?," Resources Policy, Elsevier, vol. 77(C).
    12. Zhang, Jingyue & Tian, Grace Li & Yuan, Shengli & Tu, Yongqian, 2024. "Exploring the nexus between mineral policies, natural resource utilization, and green reforms for driving economic growth in China," Resources Policy, Elsevier, vol. 89(C).
    13. Destek, Mehmet Akif & Adedoyin, Festus & Bekun, Festus Victor & Aydin, Sercan, 2023. "Converting a resource curse into a resource blessing: The function of institutional quality with different dimensions," Resources Policy, Elsevier, vol. 80(C).
    14. Oteng-Abayie, Eric Fosu & Duodu, Emmanuel & Mensah, Gideon & Frimpong, Prince Boakye, 2022. "Natural resource abundance, environmental sustainability, and policies and institutions for environmental sustainability in sub-Saharan Africa," Resources Policy, Elsevier, vol. 79(C).
    15. Lan, Yueqin & Krishnan, Deepika & Zheng, Jiyuan, 2023. "Impact of international trade on crude oil in political unstable economies: Evidence from quantile regression," Resources Policy, Elsevier, vol. 83(C).
    16. Zhou, Long & Alharthi, Majed & Aziz, Babar & Kok, Shiau Hui & Wasim, Sarah & Dong, Xiaohong, 2024. "Illuminating the contributions of fintech, mineral resources, and foreign direct investment in alleviating environmental issues: An empirical analysis," Resources Policy, Elsevier, vol. 89(C).
    17. Tadadjeu, Sosson & Njangang, Henri & Woldemichael, Andinet, 2023. "Are resource-rich countries less responsive to global warming? Oil wealth and climate change policy," Energy Policy, Elsevier, vol. 182(C).
    18. Li Yang & Sumaiya Bashiru Danwana & Fadilul-lah Yassaanah Issahaku, 2022. "Achieving Environmental Sustainability in Africa: The Role of Renewable Energy Consumption, Natural Resources, and Government Effectiveness—Evidence from Symmetric and Asymmetric ARDL Models," IJERPH, MDPI, vol. 19(13), pages 1-26, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    2. Michel Beine & Serge Coulombe & Wessel N. Vermeulen, 2015. "Dutch Disease and the Mitigation Effect of Migration: Evidence from Canadian Provinces," Economic Journal, Royal Economic Society, vol. 125(589), pages 1574-1615, December.
    3. Khan, Muhammad Atif & Gu, Lulu & Khan, Muhammad Asif & Oláh, Judit, 2020. "Natural resources and financial development: The role of institutional quality," Journal of Multinational Financial Management, Elsevier, vol. 56(C).
    4. Tadadjeu, Sosson & Njangang, Henri & Ningaye, Paul & Nourou, Mohammadou, 2020. "Linking natural resource dependence and access to water and sanitation in African countries," Resources Policy, Elsevier, vol. 69(C).
    5. Wu, Haitao & Hao, Yu & Weng, Jia-Hsi, 2019. "How does energy consumption affect China's urbanization? New evidence from dynamic threshold panel models," Energy Policy, Elsevier, vol. 127(C), pages 24-38.
    6. Dong-Hyeon Kim & Shu-Chin Lin, 2024. "Fertility and the oil curse," Empirical Economics, Springer, vol. 67(2), pages 381-416, August.
    7. Grundmann, Rainer & Gries, Thomas, 2015. "Crucial for Modern Sector Development? The Role of Exports and Institutions in Developing Countries," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112962, Verein für Socialpolitik / German Economic Association.
    8. Kamguia, Brice & Keneck-Massil, Joseph & Nvuh-Njoya, Youssouf & Tadadjeu, Sosson, 2022. "Natural resources and innovation: Is the R&D sector cursed too?," Resources Policy, Elsevier, vol. 77(C).
    9. Steinberg, Daniel, 2017. "Resource shocks and human capital stocks – Brain drain or brain gain?," Journal of Development Economics, Elsevier, vol. 127(C), pages 250-268.
    10. Bitoto, Fabrice Ewolo & Nkoa Ongo, Emmanuel Bruno, 2024. "Natural resource rents and public spending on education in Africa: Does women's political empowerment matter?," Resources Policy, Elsevier, vol. 93(C).
    11. Yuxiang, Karl & Chen, Zhongchang, 2011. "Resource abundance and financial development: Evidence from China," Resources Policy, Elsevier, vol. 36(1), pages 72-79, March.
    12. Farhadi, Minoo & Islam, Md. Rabiul & Moslehi, Solmaz, 2015. "Economic Freedom and Productivity Growth in Resource-rich Economies," World Development, Elsevier, vol. 72(C), pages 109-126.
    13. Chen, Yufeng & Khurshid, Adnan & Rauf, Abdur & Yang, Hanyao & Calin, Adrian Cantemir, 2023. "Natural resource endowment and human development: Contemporary role of governance," Resources Policy, Elsevier, vol. 81(C).
    14. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    15. Barrak Algharabali & J. S. Butler & Stacy Closson, 2021. "The Oil Curse Validated: Evidence from Eurasia and Latin America," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 494-501.
    16. Behzadan, Nazanin & Chisik, Richard & Onder, Harun & Battaile, Bill, 2017. "Does inequality drive the Dutch disease? Theory and evidence," Journal of International Economics, Elsevier, vol. 106(C), pages 104-118.
    17. Hsiao, Cheng & Hashem Pesaran, M. & Kamil Tahmiscioglu, A., 2002. "Maximum likelihood estimation of fixed effects dynamic panel data models covering short time periods," Journal of Econometrics, Elsevier, vol. 109(1), pages 107-150, July.
    18. Njangang, Henri & Asongu, Simplice A. & Tadadjeu, Sosson & Nounamo, Yann & Kamguia, Brice, 2022. "Governance in mitigating the effect of oil wealth on wealth inequality: A cross-country analysis of policy thresholds," Resources Policy, Elsevier, vol. 76(C).
    19. Njangang, Henri & Beleck, Alim & Tadadjeu, Sosson & Kamguia, Brice, 2022. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Telecommunications Policy, Elsevier, vol. 46(2).
    20. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers of the African Governance and Development Institute. 21/057, African Governance and Development Institute..

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721001008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.