IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v85y2023ipbs0301420723006190.html
   My bibliography  Save this article

Measuring the varying relationships between sustainable development and oil booms in different contexts: An empirical study

Author

Listed:
  • Qian, Yu
  • Xu, Zeshui
  • Qin, Yong
  • Gou, Xunjie
  • Skare, Marinko

Abstract

Sustainable development, as a global reform that takes into account economic, social and environmental aspects, requires a focus on energy activities, especially those of the oil industry, as they usually have varying degrees of impact on the three aspects mentioned. We, therefore, explore the nexus between sustainable development and oil booms based on data from 38 countries and seven specific countries (China, the USA, Russia, Norway, Brazil, Libya and Kuwait) between 1990 and 2019. First of all, the Bai-Perron tests confirm that structural changes in the oil production growth are more frequent, while the sustainable development index growth is relatively more stable. Then, we examine the performance of this nexus in different subperiods using the panel vector autoregression models and observe significant associations only in the subperiod 2012 to 2019. At last, we find that the Granger causalities and long-run dynamic relationships between sustainable development and oil booms are considerably different across economies in the vector autoregression estimations for each of the seven countries. In a word, the effect of oil production on sustainable development could be positive or negative over time and across economies, and there is no consistent conclusion, and vice versa. Thus, in the sustainable development practice and the green transformation of the oil industry, targeted strategies should be adopted according to the current development stage and the realistic background of specific objects.

Suggested Citation

  • Qian, Yu & Xu, Zeshui & Qin, Yong & Gou, Xunjie & Skare, Marinko, 2023. "Measuring the varying relationships between sustainable development and oil booms in different contexts: An empirical study," Resources Policy, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006190
    DOI: 10.1016/j.resourpol.2023.103908
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723006190
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103908?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. María Dolores Gadea & Ana Gómez-Loscos & Antonio Montañés, 2016. "Oil Price and Economic Growth: A Long Story?," Econometrics, MDPI, vol. 4(4), pages 1-28, October.
    2. Lovcha, Yuliya & Perez-Laborda, Alejandro, 2020. "Dynamic frequency connectedness between oil and natural gas volatilities," Economic Modelling, Elsevier, vol. 84(C), pages 181-189.
    3. Zavadska, Miroslava & Morales, Lucía & Coughlan, Joseph, 2020. "Brent crude oil prices volatility during major crises," Finance Research Letters, Elsevier, vol. 32(C).
    4. Aggarwal, Reena & Inclan, Carla & Leal, Ricardo, 1999. "Volatility in Emerging Stock Markets," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 34(1), pages 33-55, March.
    5. James B. Bushnell & Jonathan E. Hughes & Aaron Smith, 2022. "Food versus Fuel? Impacts of the North Dakota Oil Boom on Agricultural Prices," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 9(1), pages 79-112.
    6. Chang, Ching-Chih & Soruco Carballo, Claudia Fabiola, 2011. "Energy conservation and sustainable economic growth: The case of Latin America and the Caribbean," Energy Policy, Elsevier, vol. 39(7), pages 4215-4221, July.
    7. Carlos Lassala & Maria Orero-Blat & Samuel Ribeiro-Navarrete, 2021. "The financial performance of listed companies in pursuit of the Sustainable Development Goals (SDG)," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 427-449, January.
    8. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    9. Yong Qin & Xinxin Wang & Zeshui Xu & Marinko Škare, 2021. "The impact of poverty cycles on economic research: evidence from econometric analysis," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 152-171, January.
    10. Alsayegh, Osamah & Saker, Nathalie & Alqattan, Ayman, 2018. "Integrating sustainable energy strategy with the second development plan of Kuwait," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3430-3440.
    11. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    12. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    13. Jushan Bai & Pierre Perron, 2003. "Critical values for multiple structural change tests," Econometrics Journal, Royal Economic Society, vol. 6(1), pages 72-78, June.
    14. Michael R. M. Abrigo & Inessa Love, 2016. "Estimation of panel vector autoregression in Stata," Stata Journal, StataCorp LP, vol. 16(3), pages 778-804, September.
    15. Mukhtarov, Shahriyar & Mikayilov, Jeyhun I. & Maharramov, Shahin & Aliyev, Javid & Suleymanov, Elchin, 2022. "Higher oil prices, are they good or bad for renewable energy consumption: The case of Iran?," Renewable Energy, Elsevier, vol. 186(C), pages 411-419.
    16. Wei Fan & Xi Luo & Jiabei Yu & Yiyang Dai, 2021. "An Empirical Study of Carbon Emission Impact Factors Based on the Vector Autoregression Model," Energies, MDPI, vol. 14(22), pages 1-17, November.
    17. Andy Haines & Markus Amann & Nathan Borgford-Parnell & Sunday Leonard & Johan Kuylenstierna & Drew Shindell, 2017. "Short-lived climate pollutant mitigation and the Sustainable Development Goals," Nature Climate Change, Nature, vol. 7(12), pages 863-869, December.
    18. Robert J Weiner, 2005. "Speculation in international crises: report from the Gulf," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(5), pages 576-587, September.
    19. Manfroni, Michele & Bukkens, Sandra G.F. & Giampietro, Mario, 2021. "The declining performance of the oil sector: Implications for global climate change mitigation," Applied Energy, Elsevier, vol. 298(C).
    20. Ricardo Vinuesa & Hossein Azizpour & Iolanda Leite & Madeline Balaam & Virginia Dignum & Sami Domisch & Anna Felländer & Simone Daniela Langhans & Max Tegmark & Francesco Fuso Nerini, 2020. "The role of artificial intelligence in achieving the Sustainable Development Goals," Nature Communications, Nature, vol. 11(1), pages 1-10, December.
    21. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2022. "Innovation, the knowledge economy, and green growth: Is knowledge-intensive growth really environmentally friendly?," Energy Economics, Elsevier, vol. 115(C).
    22. Mentis, Alan & Moonsammy, Stephan, 2022. "A critical assessment of Guyana's sustainability pathway: Perspectives from a developing extractive economy," Resources Policy, Elsevier, vol. 76(C).
    23. Mohammad Nourani & Nurhafiza Abdul Kader Malim & Md Aslam Mia, 2021. "Revisiting efficiency of microfinance institutions (MFIs): an application of network data envelopment analysis," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 1146-1169, January.
    24. Chow, Gregory C & Lin, An-loh, 1971. "Best Linear Unbiased Interpolation, Distribution, and Extrapolation of Time Series by Related Series," The Review of Economics and Statistics, MIT Press, vol. 53(4), pages 372-375, November.
    25. Destek, Mehmet Akif & Aydın, Sercan & Destek, Gamze, 2022. "Investigating an optimal resource dependency to prevent natural resource curse: Evidence from countries with the curse risk," Resources Policy, Elsevier, vol. 79(C).
    26. Sarrakh, Redouane & Renukappa, Suresh & Suresh, Subashini, 2022. "Evaluation of challenges for sustainable transformation of Qatar oil and gas industry: A graph theoretic and matrix approach," Energy Policy, Elsevier, vol. 162(C).
    27. Andrews, Donald W. K. & Lu, Biao, 2001. "Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models," Journal of Econometrics, Elsevier, vol. 101(1), pages 123-164, March.
    28. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22.
    29. Pavel Kotyza & Katarzyna Czech & Michał Wielechowski & Luboš Smutka & Petr Procházka, 2021. "Sugar Prices vs. Financial Market Uncertainty in the Time of Crisis: Does COVID-19 Induce Structural Changes in the Relationship?," Agriculture, MDPI, vol. 11(2), pages 1-16, January.
    30. Hickel, Jason, 2020. "The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene," Ecological Economics, Elsevier, vol. 167(C).
    31. Hanaan Marwah, 2014. "What explains slow sub-Saharan African growth? Revisiting oil boom-era investment and productivity in Nigeria's national accounts, 1976–85," Economic History Review, Economic History Society, vol. 67(4), pages 993-1011, November.
    32. Felix N. Fernando & Dennis R. Cooley, 2016. "An Oil Boom’s Effect on Quality of Life (QoL): Lessons from Western North Dakota," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 11(4), pages 1083-1115, December.
    33. Qin, Yong & Xu, Zeshui & Wang, Xinxin & Škare, Marinko, 2022. "Green energy adoption and its determinants: A bibliometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    34. Abudu, Hermas & Cai, Xiangyu & Lin, Boqiang, 2022. "How upstream petroleum industry affects economic growth and development in petroleum producing-countries: Evidence from Ghana," Energy, Elsevier, vol. 260(C).
    35. Hanaan Marwah, 2020. "Untangling government, market, and investment failure during the Nigerian oil boom: the Cement Armada scandal 1974–1980," Business History, Taylor & Francis Journals, vol. 62(4), pages 566-587, May.
    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. Tatyana Semenova & Juan Yair Martínez Santoyo, 2024. "Increasing the Sustainability of the Strategic Development of Oil Producing Companies in Mexico," Resources, MDPI, vol. 13(8), pages 1-37, August.

    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. María Dolores Gadea & Ana Gómez-Loscos & Antonio Montañés, 2016. "Oil Price and Economic Growth: A Long Story?," Econometrics, MDPI, vol. 4(4), pages 1-28, October.
    2. Aymen Ben Rejeb & Adel Boughrara, 2015. "Financial integration in emerging market economies: Effects on volatility transmission and contagion," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 15(3), pages 161-179, September.
    3. Kazemzadeh, Emad & Fuinhas, José Alberto & Koengkan, Matheus & Shadmehri, Mohammad Taher Ahmadi, 2023. "Relationship between the share of renewable electricity consumption, economic complexity, financial development, and oil prices: A two-step club convergence and PVAR model approach," International Economics, Elsevier, vol. 173(C), pages 260-275.
    4. Dimitrios Karamanis, 2022. "Defence partnerships, military expenditure, investment, and economic growth: an analysis in PESCO countries," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 173, Hellenic Observatory, LSE.
    5. Kumeka, Terver Theophilus & Uzoma-Nwosu, Damian Chidozie & David-Wayas, Maria Onyinye, 2022. "The effects of COVID-19 on the interrelationship among oil prices, stock prices and exchange rates in selected oil exporting economies," Resources Policy, Elsevier, vol. 77(C).
    6. Zouaoui, Haykel & Zoghlami, Feten, 2020. "On the income diversification and bank market power nexus in the MENA countries: Evidence from a GMM panel-VAR approach," Research in International Business and Finance, Elsevier, vol. 52(C).
    7. Ioannis Kostakis, 2020. "Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(2), pages 123-138, December.
    8. López-Mendoza, Héctor & González-Álvarez, María A. & Montañés, Antonio, 2024. "Assessing the effectiveness of international government responses to the COVID-19 pandemic," Economics & Human Biology, Elsevier, vol. 52(C).
    9. Baldwin, Kenneth & Alhalboni, Maryam, 2023. "A value-based measure of market power for the participatory deposits of Islamic banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 87(C).
    10. Gaytán González Alejandro & González García Jesús R., 2006. "Structural Changes in the Transmission Mechanism of Monetary Policy in Mexico: A Non-linear VAR Approach," Working Papers 2006-06, Banco de México.
    11. Essahbi Essaadi, 2017. "The feasibility of currency union in Gulf Cooperation Council countries: A business cycle synchronisation view," The World Economy, Wiley Blackwell, vol. 40(10), pages 2153-2171, October.
    12. Sigmund, Michael & Ferstl, Robert, 2021. "Panel vector autoregression in R with the package panelvar," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 693-720.
    13. Alfredo M. Leone & Jorge I. Canales Kriljenko & Rodolfo Maino, 2023. "The Long and Widening Gap: Analyzing Structural Breaks in Argentina’s Economic Decline," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 29(4), pages 243-259, November.
    14. Marshall, Emily C. & Saunoris, James & Solis-Garcia, Mario & Do, Trang, 2023. "Measuring the size and dynamics of U.S. state-level shadow economies using a dynamic general equilibrium model with trends," Journal of Macroeconomics, Elsevier, vol. 75(C).
    15. Kacou Yves Thierry Kacou & Yacouba Kassouri & Andrew Adewale Alola & Mehmet Altuntaş, 2022. "Examining the sustainable development approach of migrants' remittances and financial development in sub‐Saharan African countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 804-816, October.
    16. Box, Travis & Davis, Ryan & Evans, Richard & Lynch, Andrew, 2021. "Intraday arbitrage between ETFs and their underlying portfolios," Journal of Financial Economics, Elsevier, vol. 141(3), pages 1078-1095.
    17. Hertweck, Matthias & Brey, Bjoern, 2017. "The Persistent Effects of Monsoon Rainfall Shocks in India: A Nonlinear VAR Approach," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168256, Verein für Socialpolitik / German Economic Association.
    18. Li, Shengfeng & Hoque, Hafiz & Thijssen, Jacco, 2021. "Firm financial behaviour dynamics and interactions: A structural vector autoregression approach," Journal of Corporate Finance, Elsevier, vol. 69(C).
    19. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2022. "Innovation, the knowledge economy, and green growth: Is knowledge-intensive growth really environmentally friendly?," Energy Economics, Elsevier, vol. 115(C).
    20. Balcilar, Mehmet & Roubaud, David & Uzuner, Gizem & Wohar, Mark E., 2021. "Housing sector and economic policy uncertainty: A GMM panel VAR approach," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 114-126.

    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:85:y:2023:i:pb:s0301420723006190. 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.