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Exploring the nexus between mineral policies, natural resource utilization, and green reforms for driving economic growth in China

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  • Zhang, Jingyue
  • Tian, Grace Li
  • Yuan, Shengli
  • Tu, Yongqian

Abstract

The rapid economic growth fueled by resource-intensive industries has made China a global power, but only at high environmental costs. This study examined the complex relationship between China's mineral policies, appropriation of natural resources, green reform, and the ultimate impact on economic growth. Using data from the China Statistical Yearbook and Ministry of National Resources, running back to 1986 through 2022-all with a detailed regression analysis approach. It incorporates a Vector Error Correction Model (VECM) to examine the relationships between natural financing, GDP, and debt levels; it uses Wald test estimates to uncover accurate connections in Corporate Social Responsibility (CSR). These findings suggest that although mineral-intensive industries have reigned supreme in making China an economically powerful nation, green reforms need to be implemented to slow the degradation of our environment. What we need are changes aimed at continuing but sustainable growth. This is further evidence of the contribution of green initiatives to economic prosperity. Facing a world worried about climate change and resource scarcity, how China walks the tightrope between economic development goals and ecological sustainability is significant to China and international society. Policymakers, industries, and environmentalists can derive significant insights from this study by emphasizing the inextricable link between environmental stewardship and sustained economic growth.

Suggested Citation

  • Zhang, Jingyue & Tian, Grace Li & Yuan, Shengli & Tu, Yongqian, 2024. "Exploring the nexus between mineral policies, natural resource utilization, and green reforms for driving economic growth in China," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013302
    DOI: 10.1016/j.resourpol.2023.104619
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