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Resource rent, economic stability and the legal landscape of China's green growth

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  • Yu, Qinyao
  • Zuo, Xiangbin
  • Ding, Huanhuan
  • Yin, Xunyang

Abstract

This research employs the autoregressive distributed lag technique to analyze the dynamic effects of economic stability, natural resource rent, and the legal framework on China's green economic growth between 1980 and 2021. The findings indicate that economic risk poses a significant barrier, with a 1% increase correlating with a notable decline in the green growth index, highlighting challenges tied to investment hesitation and sustainability efforts. Conversely, natural resource rent positively contributes to sustainable economic development through effective resource management. Governance indicators, such as the rule of law and transparency, drive green growth, emphasizing the government's role in promoting sustainability with clear legal frameworks. Increased government IT expenditures impede green growth, contributing to environmental degradation. Comparative analysis reveals that transparency and natural resource rent exert more substantial influences on green growth compared to economic uncertainty and the rule of law. Practical policy recommendations include robust risk management, sustainable resource practices, prioritizing good governance, prudent IT expenditure management, and enforcing stringent environmental regulations to mitigate the adverse impacts of automobile and mineral production.

Suggested Citation

  • Yu, Qinyao & Zuo, Xiangbin & Ding, Huanhuan & Yin, Xunyang, 2024. "Resource rent, economic stability and the legal landscape of China's green growth," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420724000710
    DOI: 10.1016/j.resourpol.2024.104704
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    More about this item

    Keywords

    Natural resource rent; Economic uncertainty; Legal framework; Green growth; China;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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