IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v83y2023ics0301420723004117.html
   My bibliography  Save this article

From COVID to conflict: Understanding the deriving forces of environment and implications for natural resources

Author

Listed:
  • Khan, Qasim Raza
  • Xinshu, Mao
  • Qamri, Ghulam Muhammad
  • Nawaz, Ahmad

Abstract

In the contemporary world, the importance of natural resources is increasing day by day especially due to extraordinary circumstances, i.e., COVID-19 and global conflicts. The abundance of natural resource is considered competitive advantage and crucial for sustainable development. However, the role of natural resources can be questionable especially if its impact on the economy is negative. Sustainable use of natural resources is currently the biggest challenge for governance. Following these footprints, the study aims to revisit a novel perspective of natural resources in the context of global conflicts using data from Asian economies for the period of 1996–2020. In this pursuit, this study investigates how governance balances macroeconomic variables with sustainable development to account for effective climate change adaptation, mitigation efforts and integral to control conflicts. The second-generation test of CIPS and CADF are used to deal with cross-sectional dependence issues and Westerlund cointegration to estimate long-run relationships. Furthermore, the long-run coefficients are estimated by the PMG estimator using dynamic panel ARDL approach. The findings confirm that surpassing the threshold level of governance is essential to promote environmental quality and preservation of natural resources. The region needs to promote steward policy for resources. This can take the form of nationalizing resource assets, increasing taxes and royalties on resource extraction to ensure sustainable development. The handlers need to design polices supportive to renewable energy consumption, endorse IT based industry solution, encourage high-tech inward FDI, promote green financing and support sustainable development.

Suggested Citation

  • Khan, Qasim Raza & Xinshu, Mao & Qamri, Ghulam Muhammad & Nawaz, Ahmad, 2023. "From COVID to conflict: Understanding the deriving forces of environment and implications for natural resources," Resources Policy, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:jrpoli:v:83:y:2023:i:c:s0301420723004117
    DOI: 10.1016/j.resourpol.2023.103700
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723004117
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103700?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 & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    2. Muhammad Shahbaz & Mohammad Mafizur Rahman, 2012. "The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan," Global Business Review, International Management Institute, vol. 13(2), pages 201-219, June.
    3. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
    4. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    5. Alonso, José M. & Clifton, Judith & Díaz-Fuentes, Daniel, 2017. "The impact of government outsourcing on public spending: Evidence from European Union countries," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 333-348.
    6. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    7. 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.
    8. Javorcik, Beata S. & Wei, Shang-Jin, 2009. "Corruption and cross-border investment in emerging markets: Firm-level evidence," Journal of International Money and Finance, Elsevier, vol. 28(4), pages 605-624, June.
    9. Sinha, Avik & Sengupta, Tuhin, 2019. "Impact of natural resource rents on human development: What is the role of globalization in Asia Pacific countries?," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    10. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    11. Alam, Md. Mahmudul & Murad, Md. Wahid, 2020. "The impacts of economic growth, trade openness and technological progress on renewable energy use in organization for economic co-operation and development countries," Renewable Energy, Elsevier, vol. 145(C), pages 382-390.
    12. Khan, Yasir & Oubaih, Hana & Elgourrami, Fatima Zahra, 2022. "The effect of renewable energy sources on carbon dioxide emissions: Evaluating the role of governance, and ICT in Morocco," Renewable Energy, Elsevier, vol. 190(C), pages 752-763.
    13. Chenghong Xu & Mingming Han & Toyo Amegnonna Marcel Dossou & Festus Victor Bekun, 2021. "Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 33(1), pages 193-203, March.
    14. Mosayeb PAHLAVANI & Mohammad RAHIMI, 2009. "Sources of Inflation in Iran: An application of the ARDL Approach," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    15. Manzoor Ahmad & Zeeshan Khan & Zia Ur Rahman & Shoukat Iqbal Khattak & Zia Ullah Khan, 2021. "Can innovation shocks determine CO2 emissions (CO2e) in the OECD economies? A new perspective," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(1), pages 89-109, January.
    16. Hafiz Muhammad Abubakar Siddique & Ahmad Nawaz & Muhammad Tariq Majeed, 2016. "The Impact of Institutional Governance on Economic Growth: A Panel Data Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(4), pages 210-219, December.
    17. Wang, Keying & Wu, Meng & Sun, Yongping & Shi, Xunpeng & Sun, Ao & Zhang, Ping, 2019. "Resource abundance, industrial structure, and regional carbon emissions efficiency in China," Resources Policy, Elsevier, vol. 60(C), pages 203-214.
    18. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    19. Shittu, Waliu & Adedoyin, Festus Fatai & Shah, Muhammad Ibrahim & Musibau, Hammed Oluwaseyi, 2021. "An investigation of the nexus between natural resources, environmental performance, energy security and environmental degradation: Evidence from Asia," Resources Policy, Elsevier, vol. 73(C).
    20. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    21. 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.
    22. Saint Akadiri, Seyi & Alola, Andrew Adewale & Akadiri, Ada Chigozie & Alola, Uju Violet, 2019. "Renewable energy consumption in EU-28 countries: Policy toward pollution mitigation and economic sustainability," Energy Policy, Elsevier, vol. 132(C), pages 803-810.
    23. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    24. Mohammed H. Alzard & Munjed A. Maraqa & Rezaul Chowdhury & Qasim Khan & Francisco D. B. Albuquerque & Timur Ibrahim Mauga & Khaled Nazmi Aljunadi, 2019. "Estimation of Greenhouse Gas Emissions Produced by Road Projects in Abu Dhabi, United Arab Emirates," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    25. Danish, & Ulucak, Recep, 2021. "Renewable energy, technological innovation and the environment: A novel dynamic auto-regressive distributive lag simulation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    26. Welsch, Heinz, 2008. "Resource abundance and internal armed conflict: Types of natural resources and the incidence of 'new wars'," Ecological Economics, Elsevier, vol. 67(3), pages 503-513, October.
    27. Xueqing Kang & Farman Ullah Khan & Raza Ullah & Muhammad Arif & Shams Ur Rehman & Farid Ullah, 2021. "Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries," Energies, MDPI, vol. 14(12), pages 1-15, June.
    28. Fredrick Ikpesu & Olusegun Vincent & Olamitunji Dakare, 2019. "Growth effect of trade and investment in Sub-Saharan Africa countries: Empirical insight from panel corrected standard error (PCSE) technique," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1607127-160, January.
    29. Weiqing Li & Fengsheng Chien & Hafiz Waqas Kamran & Talla M Aldeehani & Muhammad Sadiq & Van Chien Nguyen & Farhad Taghizadeh-Hesary, 2022. "The nexus between COVID-19 fear and stock market volatility," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 1765-1785, December.
    30. Dehghan Shabani, Zahra & Shahnazi, Rouhollah, 2019. "Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis," Energy, Elsevier, vol. 169(C), pages 1064-1078.
    31. Barbier,Edward B., 2015. "Climate change impacts on rural poverty in low-elevation coastal zones," Policy Research Working Paper Series 7475, The World Bank.
    32. Stephanie Kremer & Alexander Bick & Dieter Nautz, 2013. "Inflation and growth: new evidence from a dynamic panel threshold analysis," Empirical Economics, Springer, vol. 44(2), pages 861-878, April.
    33. Acheampong, Alex O. & Amponsah, Mary & Boateng, Elliot, 2020. "Does financial development mitigate carbon emissions? Evidence from heterogeneous financial economies," Energy Economics, Elsevier, vol. 88(C).
    34. Le, Thai-Ha & Nguyen, Canh Phuc, 2019. "Is energy security a driver for economic growth? Evidence from a global sample," Energy Policy, Elsevier, vol. 129(C), pages 436-451.
    35. Mahalik, Mantu Kumar & Villanthenkodath, Muhammed Ashiq & Mallick, Hrushikesh & Gupta, Monika, 2021. "Assessing the effectiveness of total foreign aid and foreign energy aid inflows on environmental quality in India," Energy Policy, Elsevier, vol. 149(C).
    36. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    37. Rafei, Meysam & Esmaeili, Parisa & Balsalobre-Lorente, Daniel, 2022. "A step towards environmental mitigation: How do economic complexity and natural resources matter? Focusing on different institutional quality level countries," Resources Policy, Elsevier, vol. 78(C).
    38. Cong Minh Huynh & Hong Hiep Hoang, 2019. "Foreign direct investment and air pollution in Asian countries: does institutional quality matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(17), pages 1388-1392, October.
    39. Ferreira, Miguel A. & Matos, Pedro, 2008. "The colors of investors' money: The role of institutional investors around the world," Journal of Financial Economics, Elsevier, vol. 88(3), pages 499-533, June.
    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. Yang, Haifei & Feng, Qi & Yu, Wanqing & Lyu, Jiayu, 2024. "Exploring the interplay of resource utilization, human capital, and FDI in enhancing national well-being: Evidence from OECD countries," Resources Policy, Elsevier, vol. 90(C).
    2. Xie, Tao & Xu, Ye & Li, Yu, 2024. "Nonlinear relationship between natural resources and economic growth: The role of frontier technology," Resources Policy, Elsevier, vol. 90(C).
    3. Ullah, Farid & Cai, Helen Huifen & Yuan, Qiong & Ul-Haq, Jabbar, 2024. "Plenty of resources and energy security risk nexus: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 92(C).
    4. Zhao, Yunying & Wang, Wenju & Liang, Zhentang & Luo, Peng, 2024. "Racing towards zero carbon: Unraveling the interplay between natural resource rents, green innovation, geopolitical risk and environmental pollution in BRICS countries," Resources Policy, Elsevier, vol. 88(C).
    5. Cai, Chunlin & Li, Ning, 2023. "The threshold effect of export sophistication on natural resources-trade diversification nexus," Resources Policy, Elsevier, vol. 86(PA).
    6. Liu, Tong & Lan, Bo, 2024. "On the conflict of natural resources abundance and export upgrading in upper-middle and high-income countries," Resources Policy, Elsevier, vol. 89(C).

    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. Lin, Boqiang & Okoye, Jude O., 2023. "Towards renewable energy generation and low greenhouse gas emission in high-income countries: Performance of financial development and governance," Renewable Energy, Elsevier, vol. 215(C).
    2. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    3. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    4. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    5. Li, Rongrong & Wang, Qiang & Li, Lejia & Hu, Sailan, 2023. "Do natural resource rent and corruption governance reshape the environmental Kuznets curve for ecological footprint? Evidence from 158 countries," Resources Policy, Elsevier, vol. 85(PB).
    6. Irfan, Muhammad & Rehman, Mubeen Abdur & Razzaq, Asif & Hao, Yu, 2023. "What derives renewable energy transition in G-7 and E-7 countries? The role of financial development and mineral markets," Energy Economics, Elsevier, vol. 121(C).
    7. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2020. "Renewable energy consumption and economic growth nexus: Evidence from a threshold model," Energy Policy, Elsevier, vol. 139(C).
    8. Zhou, Anhua & Li, Jun, 2022. "How do trade liberalization and human capital affect renewable energy consumption? Evidence from the panel threshold model," Renewable Energy, Elsevier, vol. 184(C), pages 332-342.
    9. Faris Alshubiri & Mohamed Elheddad & Syed Ahsan Jamil & Nassima Djellouli, 2021. "The impacts of financial depth and foreign direct investment on the green and non-green energy consumption of OPEC members," SN Business & Economics, Springer, vol. 1(6), pages 1-29, June.
    10. Adedoyin, Festus Fatai & Alola, Andrew Adewale & Bekun, Festus Victor, 2021. "The alternative energy utilization and common regional trade outlook in EU-27: Evidence from common correlated effects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    11. Iftikhar Yasin & Nawaz Ahmad & Muhammad Aslam Chaudhary, 2021. "The impact of financial development, political institutions, and urbanization on environmental degradation: evidence from 59 less-developed economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6698-6721, May.
    12. Dao, Ngoc Bich & Truong, Huong Hoang Diep & Shahbaz, Muhammad & Chu, Lan Khanh, 2024. "The impacts of natural resources rents diversification, uncertainty, and environmental technologies on ecological sustainability: Empirical evidence from OECD countries," Resources Policy, Elsevier, vol. 91(C).
    13. Destek, Gamze & Hossain, Mohammad Razib & Aydın, Sercan & Destek, Mehmet Akif, 2023. "Can the resource curse be reversed through financialization, human capital, and institutional quality? Evidence from Sustainable Development Index," Resources Policy, Elsevier, vol. 86(PB).
    14. Uddin, Md. Kamal & Pan, Xiongfeng & Saima, Umme & Zhang, Chengming, 2022. "Influence of financial development on energy intensity subject to technological innovation: Evidence from panel threshold regression," Energy, Elsevier, vol. 239(PD).
    15. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.
    16. Feng, Yanchao & Sabir, Saeed Ahmad & Quddus, Abdul & Wang, Jianxin & Abbas, Shujaat, 2024. "Do the grey clouds of geopolitical risk and political globalization exacerbate environmental degradation? Evidence from resource-rich countries," Resources Policy, Elsevier, vol. 89(C).
    17. Myo Myo Htike & Anil Shrestha & Makoto Kakinaka, 2022. "Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12712-12739, November.
    18. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    19. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    20. Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(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:83:y:2023:i:c:s0301420723004117. 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.