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COP26 perspective of natural resources extraction: Oil and mineral resources perspective of developed economies

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  • Cao, Chunyan
  • Chen, Wei
  • Aslam, Misbah

Abstract

The rising value of the extracted natural resources is a direct result of industrialization, which in turn is driven by economic growth. Continuous development, agricultural practices, and hazardous mining operations can all harm the environment. Hence, this research examines the impact of natural resources on carbon emission alongside other significant control variables, such as renewable energy consumption and economic growth, across BRICS economies from 1990 to 2020. The authors use panel data and the latest panel data econometrics tools for long-run relationships, such as the Method of Moment Quantile Regressions, to detect variable changes over time for empirical evidence in BRICS countries. First, slope homogeneity and cross-section dependence tests showed that slopes were not uniform across the distribution and that variables were cross-dependent. Then, the different panel unit root test that is most applicable is applied. The Westerlund cointegration test was then utilized to determine the cointegration of variables over the long term. The results of the MMQR indicate that natural resources and economic expansion boost carbon emissions in BRICS economies. Additionally, renewable energy consumption and mineral rents reduce carbon emissions. The outcomes of this research include policy recommendations for limiting the overexploitation of natural resources and sustaining economic growth in the BRICS countries.

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  • Cao, Chunyan & Chen, Wei & Aslam, Misbah, 2023. "COP26 perspective of natural resources extraction: Oil and mineral resources perspective of developed economies," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s030142072300185x
    DOI: 10.1016/j.resourpol.2023.103477
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