IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v95y2024ics0301420724004811.html
   My bibliography  Save this article

A roadmap for sustainable global supply chain distribution: Exploring the interplay of ECON-ESG factors, technological advancement and SDGs on natural resources

Author

Listed:
  • Işık, Cem
  • Ongan, Serdar
  • Islam, Hasibul
  • Menegaki, Angeliki N.

Abstract

The continuity of increasing Natural Resource Rents (NR) largely depends on these resources' sustainable Global Supply Chain Distribution (GSCD). In turn, a sustainable GSCD necessitates the presence of sustainable environmental (E), social (S), governance (G), and economic (ECON) factors (ECON-ESG), as well as technological advancements and sustainable development goals (SDGs) globally. Therefore, this study investigates the impacts of all the factors on NR within 33 OECD countries. CS-ARDL model is employed for this aim. The empirical findings reveal the positive impacts of economic factors, environmental aspects, and SDGs on NR. Conversely, the model finds negative effects of technological advancement and governance on NR. The negative impacts (contrary to expectations) of technological advancements on NR can be due to (i) technological advancements can encourage the development of non-natural resources such as renewable energy, causing less demand for and thereby less supply of natural resources and rents. This potential reason can be referred to as Schumpeter's (1942) “creative destruction theory,” which postulates that new technologies can replace older ones. (ii) Technological advancements may require high initial costs; therefore, investing in natural resources and updating technological infrastructure may be costly, reducing rents from natural resources. Therefore, given the complex interactions above, policymakers should implement tailored policies compatible with ECON-ESG and SDGs for a sustainable GSCD. Apart from the individual effects of each component of ECON, E, S, and G on NR, the impact of a single composite and comprehensive form of sustainability, ECON-ESG, developed and proposed by Isik et al. (2024c), on NR is negative. This new and proposed form of sustainability can enable policymakers and firms to review their economic, environmental, social, and governance policies holistically and manage their NR policies accordingly.

Suggested Citation

  • Işık, Cem & Ongan, Serdar & Islam, Hasibul & Menegaki, Angeliki N., 2024. "A roadmap for sustainable global supply chain distribution: Exploring the interplay of ECON-ESG factors, technological advancement and SDGs on natural resources," Resources Policy, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:jrpoli:v:95:y:2024:i:c:s0301420724004811
    DOI: 10.1016/j.resourpol.2024.105114
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724004811
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105114?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. Farzaneh Ahmadian-Yazdi & Mahsa Mesgarani & Soheil Roudari, 2022. "Natural Resource Rents and Social Capital Interaction: New Evidence on the Role of Financial Development," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-30, March.
    2. Thanh Le & Cuong Le Van, 2014. "Natural Resources, R&D and Economic Growth," Working Papers 2014-112, Department of Research, Ipag Business School.
    3. Ng Thanh Mai & Le Thanh Ha & Tr?n Thi Mai Hoa & Nguyen Thi Thanh Huyen, 2022. "Effects of Digitalization on Natural Resource Use in European Countries: Does Economic Complexity Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 77-92, May.
    4. Işık, Cem & Kuziboev, Bekhzod & Ongan, Serdar & Saidmamatov, Olimjon & Mirkhoshimova, Mokhirakhon & Rajabov, Alibek, 2024. "The volatility of global energy uncertainty: Renewable alternatives," Energy, Elsevier, vol. 297(C).
    5. Sanjay Taneja & Mukul Bhatnagar & Pawan Kumar & Ramona Rupeika-Apoga, 2023. "India’s Total Natural Resource Rents (NRR) and GDP: An Augmented Autoregressive Distributed Lag (ARDL) Bound Test," JRFM, MDPI, vol. 16(2), pages 1-14, February.
    6. Leiva, Benjamin, 2020. "Natural resource rent allocation, government quality, and concession design: The case of copper in Chile," Resources Policy, Elsevier, vol. 68(C).
    7. Kjetil Bjorvatn & Mohammad Reza Farzanegan, 2015. "Resource rents, balance of power, and political stability," Journal of Peace Research, Peace Research Institute Oslo, vol. 52(6), pages 758-773, November.
    8. repec:eme:prrpps:prr-09-2021-0052 is not listed on IDEAS
    9. Nchofoung, Tii N. & Achuo, Elvis Dze & Asongu, Simplice A., 2021. "Resource rents and inclusive human development in developing countries," Resources Policy, Elsevier, vol. 74(C).
    10. Zhu, Jia & Zhou, Pengfei & Shen, Yang, 2024. "Exploring the individual and combined effect of natural resource rents, fin-tech, and renewable energy on sustainable development: New insights from SSA countries," Resources Policy, Elsevier, vol. 91(C).
    11. Jiang, Yihuo & Ni, Hongliang & Guo, Xiaomei & Ni, Yihan, 2023. "Integrating ESG practices and natural resources management for sustainable economic development in SMEs under the double-carbon target of China," Resources Policy, Elsevier, vol. 87(PA).
    12. Sharif, Arshian & Sofuoglu, Emrah & Kocak, Sinem & Anwar, Ahsan, 2024. "Can green finance and energy provide a Glimmer of hope towards sustainable environment in the midst of chaos? An evidence from Malaysia," Renewable Energy, Elsevier, vol. 223(C).
    13. Yingzheng Yan & Qiuwang Cheng & Menglan Huang & Qiaohua Lin & Wenhe Lin, 2022. "Government Environmental Regulation and Corporate ESG Performance: Evidence from Natural Resource Accountability Audits in China," IJERPH, MDPI, vol. 20(1), pages 1-16, December.
    14. Lutfi Abdul Razak & Mansor H. Ibrahim & Adam Ng, 2023. "Environment, social and governance (ESG) performance and CDS spreads: the role of country sustainability," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(5), pages 585-613, July.
    15. Zoica KOKAVESHI (ZHARKALLI), 2018. "THE IMPORTANCE OF NATURAL RESOURCES IN THE ALBANIAN ECONOMY: The economic impact of forestry and pasture managment decentralization," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 7(3), pages 24-31, September.
    16. Thomas Gunton, 2003. "Natural Resources and Regional Development: An Assessment of Dependency and Comparative Advantage Paradigms," Economic Geography, Taylor & Francis Journals, vol. 79(1), pages 67-94, January.
    17. Balsalobre-Lorente, Daniel & Contente dos Santos Parente, Clara & Leitão, Nuno Carlos & Cantos-Cantos, José María, 2023. "The influence of economic complexity processes and renewable energy on CO2 emissions of BRICS. What about industry 4.0?," Resources Policy, Elsevier, vol. 82(C).
    18. Alfred Zack-Williams, 2016. "Natural resources, economic rents and social justice in contemporary Africa," Review of African Political Economy, Taylor & Francis Journals, vol. 43(150), pages 533-539, October.
    19. Quayson, Matthew & Bai, Chunguang & Mahmoudi, Amin & Hu, Weihao & Chen, Wei & Omoruyi, Osayuwamen, 2023. "Designing a decision support tool for integrating ESG into the natural resource extraction industry for sustainable development using the ordinal priority approach," Resources Policy, Elsevier, vol. 85(PA).
    20. Kin Sibanda & Rufaro Garidzirai & Farai Mushonga & Dorcas Gonese, 2023. "Natural Resource Rents, Institutional Quality, and Environmental Degradation in Resource-Rich Sub-Saharan African Countries," Sustainability, MDPI, vol. 15(2), pages 1-11, January.
    21. Koçak, Emrah & Önderol, Seyit & Khan, Kamran, 2021. "Structural change, modernization, total factor productivity, and natural resources sustainability: An assessment with quantile and non-quantile estimators," Resources Policy, Elsevier, vol. 74(C).
    22. Işık, Cem & Bulut, Umit & Ongan, Serdar & Islam, Hasibul & Irfan, Muhammad, 2024. "Exploring how economic growth, renewable energy, internet usage, and mineral rents influence CO2 emissions: A panel quantile regression analysis for 27 OECD countries," Resources Policy, Elsevier, vol. 92(C).
    23. Chinazaekpere Nwani & Festus V. Bekun & Bright A. Gyamfi & Ekpeno L. Effiong & Andrew A. Alola, 2023. "Toward sustainable use of natural resources: Nexus between resource rents, affluence, energy intensity and carbon emissions in developing and transition economies," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 155-176, May.
    24. Radulescu, Magdalena & Dalal, Surjeet & Lilhore, Umesh Kumar & Saimiya, Sarita, 2024. "Optimizing mineral identification for sustainable resource extraction through hybrid deep learning enabled FinTech model," Resources Policy, Elsevier, vol. 89(C).
    25. Katja Hujo, 2012. "Conclusion: Harnessing the Potential of Mineral Rents for Social Development - Options and Constraints," Social Policy in a Development Context, in: Katja Hujo (ed.), Mineral Rents and the Financing of Social Policy, chapter 11, pages 318-331, Palgrave Macmillan.
    26. Aljarallah, Ruba A., 2021. "An assessment of the economic impact of natural resource rents in kingdom of Saudi Arabia," Resources Policy, Elsevier, vol. 72(C).
    27. Balsalobre-Lorente, Daniel & Abbas, Jaffar & He, Chang & Pilař, Ladislav & Shah, Syed Ale Raza, 2023. "Tourism, urbanization and natural resources rents matter for environmental sustainability: The leading role of AI and ICT on sustainable development goals in the digital era," Resources Policy, Elsevier, vol. 82(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. Musah, Mohammed & Onifade, Stephen Taiwo & Ankrah, Isaac & Gyamfi, Bright Akwasi & Amoako, George Kofi, 2024. "Achieving net-zero emission target in Africa: Are sustainable energy innovations and financialization crucial for environmental sustainability of sub-Saharan African state?," Applied Energy, Elsevier, vol. 364(C).
    2. Li, Yi-Wen & Zhang, Wen-Wen & Zhao, Bin & Sharp, Basil & Gu, Yu & Xu, Shi-Chun & Rao, Lan-lan, 2023. "Natural resources and human development: Role of ICT in testing the resource-curse hypothesis in N11 and BRICS countries," Resources Policy, Elsevier, vol. 81(C).
    3. Işık, Cem & Bulut, Umit & Ongan, Serdar & Islam, Hasibul & Irfan, Muhammad, 2024. "Exploring how economic growth, renewable energy, internet usage, and mineral rents influence CO2 emissions: A panel quantile regression analysis for 27 OECD countries," Resources Policy, Elsevier, vol. 92(C).
    4. Juan Pablo Vallejo Mata & María Gabriela González Bautista & Luis Eduardo Solis Granda & Eduardo Germán Zurita Moreano, 2024. "Evaluating the Environmental Kuznets Curve: The Role of Renewable Energy, Economic Growth, Urban Density and Trade Openness on CO2 Emissions. An Analysis for High-Income Countries Using the CS-ARDL Mo," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 580-596, November.
    5. Lotfalipour, Mohammad Reza & sargolzaie, Ali & Salehnia, Narges, 2022. "Natural resources: A curse on welfare?," Resources Policy, Elsevier, vol. 79(C).
    6. Pratibha, S. & Sharma, Vishal & Krishna, M., 2024. "Nexus between total natural resource rents and public debt within symmetric and asymmetric framework: Fresh insight from resource-rich economy," Resources Policy, Elsevier, vol. 93(C).
    7. Zhang, Fuyu & Wang, Qiang & Li, Rongrong, 2024. "Linking natural resource abundance and green growth: The role of energy transition," Resources Policy, Elsevier, vol. 91(C).
    8. Barreto Nieto, Carlos Alberto & Linares, Jose & Armenta, Rosa María, 2011. "Natural resources royalties and local development in Colombia," MPRA Paper 45786, University Library of Munich, Germany.
    9. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    10. Tiainen, Heidi, 2016. "Contemplating governance for social sustainability in mining in Greenland," Resources Policy, Elsevier, vol. 49(C), pages 282-289.
    11. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Female unemployment, mobile money innovations and doing business by females," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-26, December.
    12. repec:ipg:wpaper:2014-567 is not listed on IDEAS
    13. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "The role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana," Working Papers of the African Governance and Development Institute. 23/035, African Governance and Development Institute..
    14. Chen, Liang & Guo, Yirong, 2023. "The drivers of sustainable development: Natural resources extraction and education for low-middle- and high-income countries," Resources Policy, Elsevier, vol. 86(PB).
    15. Simplice A. Asongu & Jean R. F. K. Bouanza & Armand F. Akpa, 2024. "Governance and Structural Transformation in Africa: Thresholds of Lifelong Gender Inclusive Education," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 24/010, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    16. Phoebe W. Ishak & Mohammad Reza Farzanegan, 2022. "Oil price shocks, protest, and the shadow economy: Is there a mitigation effect?," Economics and Politics, Wiley Blackwell, vol. 34(2), pages 298-321, July.
    17. Wang, Zhongbao & Razzaq, Asif, 2022. "Natural resources, energy efficiency transition and sustainable development: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 79(C).
    18. Elvis Dze Achuo & Tii N. Nchofoung & Simplice A. Asongu & Gildas Dohba Dinga, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," Research Africa Network Working Papers 21/073, Research Africa Network (RAN).
    19. Mounir Amdaoud, 2019. "Ressources naturelles, innovation et développement économique : vers une nouvelle approche," CEPN Working Papers 2019-06, Centre d'Economie de l'Université de Paris Nord.
    20. Simplice A. Asongu & Amarachi O. Ogbonna & Mariette C. N. Mete, 2024. "Marriage as an argument for energy poverty reduction: the moderating role of financial inclusion," Working Papers of the African Governance and Development Institute. 24/031, African Governance and Development Institute..
    21. Feng, Xinzhen & Zhou, Dequn & Hussain, Tufail, 2024. "An investigation of fintech governance, natural resources and government stability on sustainability: Policy suggestions under the SDGs theme," Resources Policy, Elsevier, vol. 96(C).

    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:95:y:2024:i:c:s0301420724004811. 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.