IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v89y2024ics0301420723012503.html
   My bibliography  Save this article

Financial development for sustainable resource efficiency: Fostering green growth in natural resource markets

Author

Listed:
  • Bai, Chengyu

Abstract

We aim to analyze the outcomes of extracting natural resources on China's long-term economic growth, considering its dominant financial status regarding purchasing power parity (PPP). The prevalent discord between the favorable outcomes of resource mining on economic advancement and the adverse results on the ecosystem sparks this exploration. We utilize numerous distinct econometric panel methodologies, such as fixed effects, two-stage least squares, and robustness tests, utilizing provincial-level data from 2001 to 2022. Additionally, we examine how the significance of natural resources in the Chinese provincial economy can be diminished or enhanced by promoting education and environmentally friendly innovation. Our findings indicate that extracting natural resources harms long-term prosperity, lending empirical support to the “resource curse” theory. While resource extraction poses a challenge to sustainable development, it also presents an opportunity when accompanied by green innovation and education implementation. Furthermore, the consequences of resource mining for sustainable growth are more pronounced in less urbanized and Western regions, highlighting regional variability. The perceived adverse effects of natural resources need not be viewed as a curse if accompanied by green innovation and education. Building upon these results, we propose policy implications and suggestions to foster sustainable economic growth in China.

Suggested Citation

  • Bai, Chengyu, 2024. "Financial development for sustainable resource efficiency: Fostering green growth in natural resource markets," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012503
    DOI: 10.1016/j.resourpol.2023.104539
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723012503
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104539?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. Omokanmi, Olatunde Julius & Ibrahim, Ridwan Lanre & Ajide, Kazeem Bello & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Exploring the dynamic impacts of natural resources and environmental pollution on longevity in resource-dependent African countries: Does income level matter?," Resources Policy, Elsevier, vol. 79(C).
    2. Liu, Yang & Wang, Jianda & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "How does natural resource abundance affect green total factor productivity in the era of green finance? Global evidence," Resources Policy, Elsevier, vol. 81(C).
    3. Mohsin, Muhammad & Hanif, Imran & Taghizadeh-Hesary, Farhad & Abbas, Qaiser & Iqbal, Wasim, 2021. "Nexus between energy efficiency and electricity reforms: A DEA-Based way forward for clean power development," Energy Policy, Elsevier, vol. 149(C).
    4. Zheng, Shiyong & Irfan, Muhammad & Ai, Fengyi & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do renewable energy, urbanisation, and natural resources enhance environmental quality in China? Evidence from novel bootstrap Fourier Granger causality in quantiles," Resources Policy, Elsevier, vol. 81(C).
    5. Mohsin, Muhammad & Taghizadeh-Hesary, Farhad & Iqbal, Nadeem & Saydaliev, Hayot Berk, 2022. "The role of technological progress and renewable energy deployment in green economic growth," Renewable Energy, Elsevier, vol. 190(C), pages 777-787.
    6. Zhao, Jun & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "Is income inequality a stumbling block to the global natural gas market?," Energy Economics, Elsevier, vol. 118(C).
    7. Chang, Lei & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2022. "How do ICT and renewable energy impact sustainable development?," Renewable Energy, Elsevier, vol. 199(C), pages 123-131.
    8. Chang, Lei & Taghizadeh-Hesary, Farhad & Mohsin, Muhammad, 2023. "Role of artificial intelligence on green economic development: Joint determinates of natural resources and green total factor productivity," Resources Policy, Elsevier, vol. 82(C).
    9. Limi Kouotou, Hibrahim & Atangana Ondoa, Henri, 2023. "Africa's natural resource curse: Does the arrival of new heads of state break the spell?," Resources Policy, Elsevier, vol. 81(C).
    10. Tan, Xiujie & Xiao, Ziwei & Liu, Yishuang & Taghizadeh-Hesary, Farhad & Wang, Banban & Dong, Hanmin, 2022. "The effect of green credit policy on energy efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    11. 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).
    12. Yan, Juan & Haroon, Muhammad, 2023. "Financing efficiency in natural resource markets mobilizing private and public capital for a green recovery," Resources Policy, Elsevier, vol. 85(PB).
    13. Chen, Shengming & Wang, Fushuai & Haroon, Muhammad, 2023. "The impact of green economic recovery on economic growth and ecological footprint: A case study in developing countries of Asia," Resources Policy, Elsevier, vol. 85(PA).
    14. 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.
    15. Yating, Yang & Mughal, Nafeesa & Wen, Jun & Thi Ngan, Truong & Ramirez-Asis, Edwin & Maneengam, Apichit, 2022. "Economic performance and natural resources commodity prices volatility: Evidence from global data," Resources Policy, Elsevier, vol. 78(C).
    16. Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Han Phoumin, 2021. "Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World," Sustainability, MDPI, vol. 13(10), pages 1-24, May.
    17. Muhammad Mohsin & Han Phoumin & Ik Joong Youn & Farhad Taghizadeh-Hesary, 2021. "Enhancing Energy and Environmental Efficiency in the Power Sectors: A Case Study of Singapore and China," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 23(03n04), pages 1-26, December.
    18. Xiaohai Sun & Yang Chenggang & Anwar Khan & Jamal Hussain & Sadia Bano, 2021. "The role of tourism, and natural resources in the energy-pollution-growth nexus: an analysis of belt and road initiative countries," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(6), pages 999-1020, May.
    19. Wen, Jun & Mughal, Nafeesa & Kashif, Maryam & Jain, Vipin & Ramos Meza, Carlos Samuel & Cong, Phan The, 2022. "Volatility in natural resources prices and economic performance: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 75(C).
    20. Farhad Taghizadeh-Hesary & Ehsan Rasoulinezhad & Naoyuki Yoshino & Youngho Chang & Farzad Taghizadeh-Hesary & Peter J. Morgan, 2021. "The Energy–Pollution–Health Nexus: A Panel Data Analysis Of Low- And Middle-Income Asian Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 66(02), pages 435-455, March.
    21. Yang, Zhenbing & Fan, Meiting & Shao, Shuai & Yang, Lili, 2017. "Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis," Energy Economics, Elsevier, vol. 68(C), pages 271-282.
    22. Liu, Xiaoqin & Wojewodzki, Michal & Cai, Yifei & Sharma, Satish, 2023. "The dynamic relationships between carbon prices and policy uncertainties," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    23. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Shahbaz, Muhammad & Vinh Vo, Xuan, 2021. "How energy transition and power consumption are related in Asian economies with different income levels?," Energy, Elsevier, vol. 237(C).
    24. Chang, Lei & Shi, Fanglan & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2023. "Information and communication technologies development and the resource curse," Resources Policy, Elsevier, vol. 80(C).
    25. Zhang, Feng & Huang, Yongming & Nan, Xiaoli, 2022. "The price volatility of natural resource commodity and global economic policy uncertainty: Evidence from US economy," Resources Policy, Elsevier, vol. 77(C).
    26. Fang, Ying & Fan, Ying & Haroon, Muhammad & Dilanchiev, Azer, 2023. "Exploring the relationship between global economic policy and volatility of crude futures: A two-factor GARCH-MIDAS analysis," Resources Policy, Elsevier, vol. 85(PA).
    27. Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Muhammad Mohsin & Nawazish Mirza, 2022. "Introduction: Ways To Achieve Green Economic Recovery And Mitigate Greenhouse Gases In The Post-Covid-19 Era," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-3, August.
    28. Chang, Lei & Taghizadeh-Hesary, Farhad & Chen, Huangen & Mohsin, Muhammad, 2022. "Do green bonds have environmental benefits?," Energy Economics, Elsevier, vol. 115(C).
    29. Albarracín E., Eva Susana & Gamboa, Juan C. Rodríguez & Marques, Elaine C.M. & Stosic, Tatijana, 2019. "Complexity analysis of Brazilian agriculture and energy market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 523(C), pages 933-941.
    30. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad & Otsuka, Miyu, 2021. "Covid-19 and Optimal Portfolio Selection for Investment in Sustainable Development Goals," Finance Research Letters, Elsevier, vol. 38(C).
    31. Zhang, Yang & Alharthi, Majed & Ahtsham Ali, Syed & Abbas, Qaiser & Taghizadeh-Hesary, Farhad, 2022. "The eco-innovative technologies, human capital, and energy pricing: Evidence of sustainable energy transition in developed economies," Applied Energy, Elsevier, vol. 325(C).
    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. Zheng, Xiangjie, 2024. "Driving green transformation: Innovations and green innovations in natural resource markets," Resources Policy, Elsevier, vol. 89(C).
    2. Zhang, Xuenan & Zhang, Jinxin & Wang, Hongling, 2024. "Resilient recovery strategies: Enhancing resiliency in natural resource markets for sustainable development," Resources Policy, Elsevier, vol. 90(C).
    3. Zuo, Zhenting & Cao, Rui & Teymurova, Vusala, 2024. "Unlocking natural resource potential: A balanced strategies for a fair and sustainable economic recovery," Resources Policy, Elsevier, vol. 89(C).
    4. Li, Ziyao & Dai, Liuyi, 2024. "Impact of energy stability, natural resources, and energy efficiency on ecological sustainability," Resources Policy, Elsevier, vol. 90(C).
    5. Hu, Bangyong & Guo, Man & Zhang, Shuwen, 2023. "The role of fiscal decentralization and natural resources markets in environmental sustainability in OECD," Resources Policy, Elsevier, vol. 85(PB).
    6. Su, Yong & Dong, Yue & Ullah, Mirzat & Li, Nanbo, 2024. "Utilizing natural resource efficiency at the core of green economic growth in the Anthropocene," Resources Policy, Elsevier, vol. 90(C).
    7. Yu, Mengyan & Umair, Muhammad & Oskenbayev, Yessengali & Karabayeva, Zhаnsaya, 2023. "Exploring the nexus between monetary uncertainty and volatility in global crude oil: A contemporary approach of regime-switching," Resources Policy, Elsevier, vol. 85(PB).
    8. Chen, Wei & Zou, Wandan & Zhong, Kaiyang & Aliyeva, Alina, 2023. "Machine learning assessment under the development of green technology innovation: A perspective of energy transition," Renewable Energy, Elsevier, vol. 214(C), pages 65-73.
    9. Fang, Ying & Fan, Ying & Haroon, Muhammad & Dilanchiev, Azer, 2023. "Exploring the relationship between global economic policy and volatility of crude futures: A two-factor GARCH-MIDAS analysis," Resources Policy, Elsevier, vol. 85(PA).
    10. Huang, Zilong & Ren, Xiaocong, 2024. "Impact of natural resources, resilient economic growth, and energy consumption on CO2 emissions," Resources Policy, Elsevier, vol. 90(C).
    11. Ding, Xiuying & Liu, Xuemei, 2023. "Renewable energy development and transportation infrastructure matters for green economic growth? Empirical evidence from China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 634-646.
    12. Tan, Hua & Iqbal, Nadeem & Wu, Zhengzhong, 2022. "Evaluating the impact of stakeholder engagement for renewable energy sources and economic growth for CO2 emission," Renewable Energy, Elsevier, vol. 198(C), pages 999-1007.
    13. Liu, Yang & Wu, Ailing & Wang, Jianda & Taghizadeh-Hesary, Farhad & Dong, Xiucheng, 2024. "Green growth in the global south: How does metallic minerals affect GTFP enhancement?," Resources Policy, Elsevier, vol. 88(C).
    14. Lamei, Yin & Zhou, Yue & Shan, Liu, 2023. "Environmental efficiency, climate innovation, and resource rent in Chinaʼs SDGs: Insights from quantile regressions," Resources Policy, Elsevier, vol. 86(PA).
    15. Zhao, Xing & Li, Xiangqian & He, Zhuoyi & Shi, Ruoying, 2024. "The relationship between the acquisition of corporate credit and the gender of executives: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 62(PA).
    16. 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).
    17. Yukun Cao & Jingxuan Cai & Xiangyue Liu, 2024. "RETRACTED ARTICLE: Advancing toward a sustainable future: assessing the impact of energy transition, circular economy, and international trade on carbon footprint," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-26, April.
    18. Han, Guixin & Cai, Xuesen, 2024. "The linkages among natural resources, sustainable energy technologies and human capital: An evidence from N-11 countries," Resources Policy, Elsevier, vol. 90(C).
    19. Meng, LingYan & Li, Jinshi, 2023. "Efficient natural resource rents and carbon taxes in BRICS green growth," Resources Policy, Elsevier, vol. 86(PA).
    20. Fan, Qiuyan & Hajiyeva, Aytan Merdan, 2022. "Nexus between energy efficiency finance and renewable energy development: Empirical evidence from G-7 economies," Renewable Energy, Elsevier, vol. 195(C), pages 1077-1086.

    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:89:y:2024:i:c:s0301420723012503. 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.