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Natural resource rent, green finance, and CO2 emissions from the industrial sector

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  • Zhu, Henian
  • Chen, Mengya
  • Zhao, Songnian

Abstract

This study investigates the effect of natural resource rents and green finance on industrial sustainability in 20 OECD countries from 2010 to 2020, using the CCEMG-ARDL approach. Findings reveal that a 1% increase in green finance reduces CO2 emissions by 0.43% in the short term and 0.27% in the long term, highlighting its role in supporting environmentally friendly investments. In contrast, a 1% rise in fossil fuel rents increases CO2 emissions by 0.29% short-term and 0.05% long-term, showing the pollutive impact of fossil fuel profits. Additionally, a 1% increase in electricity usage raises CO2 emissions by 0.41% short-term and 0.16% long-term, stressing the need for cleaner energy. Industry-specific patents show limited alignment with sustainability goals. Policy measures should target resource rent management, boost green finance, and encourage sustainable practices to promote industrial greening.

Suggested Citation

  • Zhu, Henian & Chen, Mengya & Zhao, Songnian, 2024. "Natural resource rent, green finance, and CO2 emissions from the industrial sector," Resources Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007372
    DOI: 10.1016/j.resourpol.2024.105370
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    More about this item

    Keywords

    Natural resource rent; Green finance; Sustainable economic development; Carbon dioxide by industry sector; OECD; Fossil fuels consumption rent;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • 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
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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