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Energy transition, natural resource consumption and environmental degradation: The role of geopolitical risk in sustainable development

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  • Bashir, Muhammad Farhan
  • Shahbaz, Muhammad
  • Malik, Muhammad Nasir
  • Ma, Beiling
  • Wang, Jianming

Abstract

Global economic policymakers are under pressure from various environmental stakeholders to focus on sustainable development by adopting energy transition and lower fossil fuel consumption. The current study evaluates the complex relationship between energy transition, natural resource consumption, geopolitical risks and environmental degradation. For econometric investigation, we rely on empirical datasets from 1995 to 2021 and employ extensive econometric analysis. We further include economic growth and banking developments to comprehend the role of macroeconomic variables in environmental protection. Our empirical findings show that energy transition and banking developments ensure environmental sustainability. Natural resource consumption, geopolitical risk and economic growth cause environmental degradation. Furthermore, robustness checks validate long-run empirical findings. Our extensive empirical investigation allows us to propose fruitful policy suggestions to overcome environmental challenges.

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  • Bashir, Muhammad Farhan & Shahbaz, Muhammad & Malik, Muhammad Nasir & Ma, Beiling & Wang, Jianming, 2023. "Energy transition, natural resource consumption and environmental degradation: The role of geopolitical risk in sustainable development," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723006967
    DOI: 10.1016/j.resourpol.2023.103985
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