IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v79y2022ics0301420722003841.html
   My bibliography  Save this article

A non-linear analysis of the impacts of natural resources and education on environmental quality: Green energy and its role in the future

Author

Listed:
  • Liu, Haiying
  • Alharthi, Majed
  • Atil, Ahmed
  • Zafar, Muhammad Wasif
  • Khan, Irfan

Abstract

Human accomplishments have increased the complexity and interconnectedness of environmental threats, resulting in widespread effects on people, ecosystems, and economies worldwide. In addition to overpopulation, pollution, burning fossil fuels, and deforestation, humans also impact the physical environment in many ways. These changes have contributed to climate change, soil erosion, poor air quality, and undrinkable water. We investigate the linear and non-linear effects of natural resources and education on CO2 emissions in the Latin American (LA) group of nations considering the roles of green energy, foreign remittances, and economic growth from 1990 to 2020. We have developed a comprehensive empirical analysis that applied second-generation advanced econometric methodologies in this study. The results of this research disclosed that natural resources pose a non-linear impact on environmental quality. The low level of natural resources benefits the environment in the LA panel, but higher use of natural resources ultimately intensifies CO2 emissions. Hence, a U-shaped association between natural resources and CO2 emissions is found in the LA panel. In the linear model, natural resources also boost CO2 emissions. Alongside this, education also intensifies CO2 emissions in the selected sample. Green energy and remittances mitigate CO2 emissions and thereby improve environmental quality.

Suggested Citation

  • Liu, Haiying & Alharthi, Majed & Atil, Ahmed & Zafar, Muhammad Wasif & Khan, Irfan, 2022. "A non-linear analysis of the impacts of natural resources and education on environmental quality: Green energy and its role in the future," Resources Policy, Elsevier, vol. 79(C).
  • Handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722003841
    DOI: 10.1016/j.resourpol.2022.102940
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420722003841
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.resourpol.2022.102940?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. Shahriyar Mukhtarov & Jeyhun I. Mikayilov & Sugra Humbatova & Vugar Muradov, 2020. "Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    2. Hanif, Imran & Aziz, Babar & Chaudhry, Imran Sharif, 2019. "Carbon emissions across the spectrum of renewable and nonrenewable energy use in developing economies of Asia," Renewable Energy, Elsevier, vol. 143(C), pages 586-595.
    3. Amjad Ali & Marc Audi & Yannick Roussel, 2021. "Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 251-260.
    4. Bai, Jushan & Kao, Chihwa & Ng, Serena, 2009. "Panel cointegration with global stochastic trends," Journal of Econometrics, Elsevier, vol. 149(1), pages 82-99, April.
    5. Khan, Irfan & Zakari, Abdulrasheed & Dagar, Vishal & Singh, Sanjeet, 2022. "World energy trilemma and transformative energy developments as determinants of economic growth amid environmental sustainability," Energy Economics, Elsevier, vol. 108(C).
    6. Jin, Taeyoung & Kim, Jinsoo, 2018. "What is better for mitigating carbon emissions – Renewable energy or nuclear energy? A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 464-471.
    7. Long, Xianling & Ji, Xi, 2019. "Economic Growth Quality, Environmental Sustainability, and Social Welfare in China - Provincial Assessment Based on Genuine Progress Indicator (GPI)," Ecological Economics, Elsevier, vol. 159(C), pages 157-176.
    8. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    9. Mihaela Onofrei & Anca-Florentina Gavriluţă (Vatamanu) & Ionel Bostan & Bogdan Florin Filip & Claudia Laurența Popescu & Gabriela Jitaru, 2020. "Impacts of the Allocation of Governmental Resources for Improving the Environment. An Empirical Analysis on Developing European Countries," IJERPH, MDPI, vol. 17(8), pages 1-18, April.
    10. Tsani, Stella, 2013. "Natural resources, governance and institutional quality: The role of resource funds," Resources Policy, Elsevier, vol. 38(2), pages 181-195.
    11. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Shahbaz, Muhammad, 2020. "Are too many natural resources to blame for the shape of the Environmental Kuznets Curve in resource-based economies?," Resources Policy, Elsevier, vol. 68(C).
    12. Blampied, Nicolás, 2021. "Economic growth, environmental constraints and convergence," Ecological Economics, Elsevier, vol. 181(C).
    13. Mahalik, Mantu Kumar & Mallick, Hrushikesh & Padhan, Hemachandra, 2021. "Do educational levels influence the environmental quality? The role of renewable and non-renewable energy demand in selected BRICS countries with a new policy perspective," Renewable Energy, Elsevier, vol. 164(C), pages 419-432.
    14. Chopra, Ritika & Magazzino, Cosimo & Shah, Muhammad Ibrahim & Sharma, Gagan Deep & Rao, Amar & Shahzad, Umer, 2022. "The role of renewable energy and natural resources for sustainable agriculture in ASEAN countries: Do carbon emissions and deforestation affect agriculture productivity?," Resources Policy, Elsevier, vol. 76(C).
    15. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    16. Sharif, Arshian & Baris-Tuzemen, Ozge & Uzuner, Gizem & Ozturk, Ilhan & Sinha, Avik, 2020. "Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach," MPRA Paper 100044, University Library of Munich, Germany.
    17. Managi, Shunsuke & Jena, Pradyot Ranjan, 2008. "Environmental productivity and Kuznets curve in India," Ecological Economics, Elsevier, vol. 65(2), pages 432-440, April.
    18. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    19. Cheng, Zhonghua & Li, Lianshui & Liu, Jun, 2020. "Natural resource abundance, resource industry dependence and economic green growth in China," Resources Policy, Elsevier, vol. 68(C).
    20. Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2015. "Productive energy use and economic growth: Energy, physical and human capital relationships," Energy Economics, Elsevier, vol. 49(C), pages 420-429.
    21. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    22. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    23. Xue, Chaokai & Shahbaz, Muhammad & Ahmed, Zahoor & Ahmad, Mahmood & Sinha, Avik, 2022. "Clean energy consumption, economic growth, and environmental sustainability: What is the role of economic policy uncertainty?," Renewable Energy, Elsevier, vol. 184(C), pages 899-907.
    24. Ahmed, Zahoor & Asghar, Muhammad Mansoor & Malik, Muhammad Nasir & Nawaz, Kishwar, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Resources Policy, Elsevier, vol. 67(C).
    25. Zahoor Ahmed & Muhammad Mansoor Asghar & Muhammad Nasir Malik & Kishwar Nawaz, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Post-Print hal-03557938, HAL.
    26. Guan, Lu & Zhang, Wei-Wei & Ahmad, Ferhana & Naqvi, Bushra, 2021. "The volatility of natural resource prices and its impact on the economic growth for natural resource-dependent economies: A comparison of oil and gold dependent economies," Resources Policy, Elsevier, vol. 72(C).
    27. Waheed Ahmad & Tariq Majeed & Zubaria Andlib, 2020. "Tourism Led Growth Hypothesis: Empirical Evidence From Five South Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(1), pages 51-59, March.
    28. Kishor Sharma, Badri Bhattarai, and Salma Ahmed, 2019. "Aid, Growth, Remittances and Carbon Emissions in Nepal," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    29. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    30. Jungho Baek & Taylor B. Young, 2021. "A new look at the crude oil prices and economic growth nexus: asymmetric evidence from Alaska," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 339-344, October.
    31. Xi Lin & Yongle Zhao & Mahmood Ahmad & Zahoor Ahmed & Husam Rjoub & Tomiwa Sunday Adebayo, 2021. "Linking Innovative Human Capital, Economic Growth, and CO 2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    32. Zafar, Muhammad Wasif & Zaidi, Syed Anees Haider & Khan, Naveed R. & Mirza, Faisal Mehmood & Hou, Fujun & Kirmani, Syed Ali Ashiq, 2019. "The impact of natural resources, human capital, and foreign direct investment on the ecological footprint: The case of the United States," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    33. Nasreen, Samia & Mbarek, Mounir Ben & Atiq-ur-Rehman, Muhammad, 2020. "Long-run causal relationship between economic growth, transport energy consumption and environmental quality in Asian countries: Evidence from heterogeneous panel methods," Energy, Elsevier, vol. 192(C).
    34. Arshad Hayat & Muhammad Tahir, 2021. "Natural Resources Volatility and Economic Growth: Evidence from the Resource-Rich Region," JRFM, MDPI, vol. 14(2), pages 1-17, February.
    35. 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).
    36. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    37. Cohen, Daniel & Leker, Laura, 2014. "Health and Education: Another Look with the Proper Data," CEPR Discussion Papers 9940, C.E.P.R. Discussion Papers.
    38. Liu, Haiying & Saleem, Muhammad Mansoor & Al-Faryan, Mamdouh Abdulaziz Saleh & Khan, Irfan & Zafar, Muhammad Wasif, 2022. "Impact of governance and globalization on natural resources volatility: The role of financial development in the Middle East North Africa countries," Resources Policy, Elsevier, vol. 78(C).
    39. Khan, Irfan & Zakari, Abdulrasheed & Zhang, Jinjun & Dagar, Vishal & Singh, Sanjeet, 2022. "A study of trilemma energy balance, clean energy transitions, and economic expansion in the midst of environmental sustainability: New insights from three trilemma leadership," Energy, Elsevier, vol. 248(C).
    40. Zakari, Abdulrasheed & Li, Guo & Khan, Irfan & Jindal, Abhinav & Tawiah, Vincent & Alvarado, Rafael, 2022. "Are abundant energy resources and Chinese business a solution to environmental prosperity in Africa?," Energy Policy, Elsevier, vol. 163(C).
    41. Hartman, Richard & Kwon, O-Sung, 2005. "Sustainable growth and the environmental Kuznets curve," Journal of Economic Dynamics and Control, Elsevier, vol. 29(10), pages 1701-1736, October.
    42. K.P. Prabheesh & Nisful Laila, 2020. "Asymmetric Effect Of Crude Oil And Palm Oil Prices On Economic Growth: Evidence From Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 23(2), pages 253-268, July.
    43. Sapkota, Pratikshya & Bastola, Umesh, 2017. "Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America," Energy Economics, Elsevier, vol. 64(C), pages 206-212.
    44. Zakari, Abdulrasheed & Khan, Irfan & Tawiah, Vincent & Alvarado, Rafael & Li, Guo, 2022. "The production and consumption of oil in Africa: The environmental implications," Resources Policy, Elsevier, vol. 78(C).
    45. Pérez, Claudia & Claveria, Oscar, 2020. "Natural resources and human development: Evidence from mineral-dependent African countries using exploratory graphical analysis," Resources Policy, Elsevier, vol. 65(C).
    46. Adebola Solarin, Sakiru & Al-Mulali, Usama & Ozturk, Ilhan, 2017. "Validating the environmental Kuznets curve hypothesis in India and China: The role of hydroelectricity consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1578-1587.
    Full references (including those not matched with items on IDEAS)

    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. Liu, Haiying & Saleem, Muhammad Mansoor & Al-Faryan, Mamdouh Abdulaziz Saleh & Khan, Irfan & Zafar, Muhammad Wasif, 2022. "Impact of governance and globalization on natural resources volatility: The role of financial development in the Middle East North Africa countries," Resources Policy, Elsevier, vol. 78(C).
    2. Saud, Shah & Haseeb, Abdul & Zafar, Muhammad Wasif & Li, Huiyun, 2023. "Articulating natural resource abundance, economic complexity, education and environmental sustainability in MENA countries: Evidence from advanced panel estimation," Resources Policy, Elsevier, vol. 80(C).
    3. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    4. Xuan, Di & Jiang, Xiaoyan & Fang, Yan, 2023. "Can globalization and the green economy hedge natural resources? Functions of population growth and financial development in BRICS countries," Resources Policy, Elsevier, vol. 82(C).
    5. Yuan, Jian & Yang, Ranran & Fu, Qiang, 2023. "Aspects of renewable energy influenced by natural resources: How do the stock market and technology play a role?," Resources Policy, Elsevier, vol. 85(PB).
    6. Li, Zeyun & Leong, Lin Woon & N Aldoseri, Mahfod Mobarak & Muda, Iskandar & Abu-Rumman, Ayman & Al Shraah, Ata, 2023. "Examining the role of sustainability and natural resources management in improving environmental quality: Evidence from Asian countries," Resources Policy, Elsevier, vol. 80(C).
    7. Appiah, Michael & Li, Mingxing & Sehrish, Saba & Abaji, Emad Eddin, 2023. "Investigating the connections between innovation, natural resource extraction, and environmental pollution in OECD nations; examining the role of capital formation," Resources Policy, Elsevier, vol. 81(C).
    8. Ahmad, Mahmood & Ahmed, Zahoor & Khan, Sana Akbar & Alvarado, Rafael, 2023. "Towards environmental sustainability in E−7 countries: Assessing the roles of natural resources, economic growth, country risk, and energy transition," Resources Policy, Elsevier, vol. 82(C).
    9. Zhang, Chunhong & Khan, Irfan & Dagar, Vishal & Saeed, Asif & Zafar, Muhammad Wasif, 2022. "Environmental impact of information and communication technology: Unveiling the role of education in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    10. Nwani, Chinazaekpere & Adams, Samuel, 2021. "Environmental cost of natural resource rents based on production and consumption inventories of carbon emissions: Assessing the role of institutional quality," Resources Policy, Elsevier, vol. 74(C).
    11. Sun, Yunpeng & Guan, Weimin & Mehmood, Usman & Yang, Xiaodong, 2022. "Asymmetric impacts of natural resources on ecological footprints: Exploring the role of economic growth, FDI and renewable energy in G-11 countries," Resources Policy, Elsevier, vol. 79(C).
    12. Li, Siying & Sun, Huaping & Sharif, Arshian & Bashir, Madiha & Bashir, Muhammad Farhan, 2024. "Economic complexity, natural resource abundance and education: Implications for sustainable development in BRICST economies," Resources Policy, Elsevier, vol. 89(C).
    13. Ahmad, Mahmood & Jiang, Ping & Majeed, Abdul & Umar, Muhammad & Khan, Zeeshan & Muhammad, Sulaman, 2020. "The dynamic impact of natural resources, technological innovations and economic growth on ecological footprint: An advanced panel data estimation," Resources Policy, Elsevier, vol. 69(C).
    14. Siming Zuo & Mingxia Zhu & Zhexiao Xu & Judit Oláh & Zoltan Lakner, 2021. "The Dynamic Impact of Natural Resource Rents, Financial Development, and Technological Innovations on Environmental Quality: Empirical Evidence from BRI Economies," IJERPH, MDPI, vol. 19(1), pages 1-17, December.
    15. Liu Sicen & Anwar Khan & Allauddin Kakar, 2022. "The Role of Disaggregated Level Natural Resources Rents in Economic Growth and Environmental Degradation of BRICS Economies," Biophysical Economics and Resource Quality, Springer, vol. 7(3), pages 1-14, September.
    16. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    17. Li, Xuelin & Yang, Lin, 2023. "Natural resources, remittances and carbon emissions: A Dutch Disease perspective with remittances for South Asia," Resources Policy, Elsevier, vol. 85(PB).
    18. Jiang, Wanxing & Gao, Han, 2023. "The nexus between natural resources and exports of goods and services in the OECD countries," Resources Policy, Elsevier, vol. 85(PA).
    19. Solomon Prince Nathaniel, 2021. "Ecological footprint and human well-being nexus: accounting for broad-based financial development, globalization, and natural resources in the Next-11 countries," Future Business Journal, Springer, vol. 7(1), pages 1-18, December.
    20. Liu, Haiying & Khan, Irfan & Zakari, Abdulrasheed & Alharthi, Majed, 2022. "Roles of trilemma in the world energy sector and transition towards sustainable energy: A study of economic growth and the environment," Energy Policy, Elsevier, vol. 170(C).

    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:79:y:2022:i:c:s0301420722003841. 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.