Assessing the influence of economic growth, natural resource utilization, and the energy relationship on environmental quality in five Asian nations
Main Article Content
Abstract
This study explores the complex linkages between natural resources, economic growth, energy usage, and CO2 emissions in six Asian countries from 1993 to 2022. Through rigorous analysis, it seeks to uncover the key drivers of sustainable development and provide actionable insights for policymakers to address environmental challenges while promoting economic growth. It employs panel data analysis and applies various econometric techniques to analyze the dynamic flow of relationships among the variables of the economic and environmental context. To examine the cross-sectional dependence and the included variables' impacts on CO2 emissions on short—and long-term, the paper uses the Pesaran Cross-Dependent test while utilizing the Dynamic Common Correlated Effects (CS-ARDL) estimator. The study shows a cross-section temporal correlation between economic and environmental factors in the region that symbolizes the interconnection of the countries’ economies. Renewable energy and non-renewable energy are found to have a direct positive effect on economic growth. In contrast, natural resource rent is found to have no or, in fact, negative or insignificant effect. This study has also found a significant positive relationship between economic growth and CO2 emissions to support the call for green economic development initiatives. Specifically, it is found that renewable energy consumption decreases CO2 emissions, thus reinforcing the need for shifting towards green energy. The research findings show the need to develop region-specific solutions that consider the socio-economic and ecological environment of Asian countries. It supports green finance laws, encourages investment in renewable technologies, and improves governance standards for sustainable development, ensuring future sustainability. Given that this research highlights the significance of the conservation and utilization of resources and the development of useful energy, this paper offers guidance for the policymakers working to reach the region's United Nations Sustainable Development Goals (UNSDGs).
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish in this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licenced under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (see The Effect of Open Access).
How to Cite
References
Al-Rawashdeh, R., Al-Nawafleh, H., & Al-Shboul, M. (2013). Understanding oil and mineral resources in a political economy context: the Middle East and North Africa (MENA). Mineral Economics, 26(1-2), 13–28. https://doi.org/10.1007/s13563-013-0035-3
Alieu Gibba, & Muhammad Kamran Khan. (2023). Modeling the causal dynamics among energy consumption, economic growth, and oil import prices: A panel co-integration analysis for EU economies. Frontiers in Environmental Economics, 2. https://doi.org/10.3389/frevc.2023.1114175
Auty, R. M. (2000). How Natural Resources Affect Economic Development. Development Policy Review, 18(4), 347–364. https://doi.org/10.1111/1467-7679.00116
Awosusi, A. A., Mata, M. N., Ahmed, Z., Coelho, M. F., Altuntaş, M., Martins, J. M., Martins, J. N., & Onifade, S. T. (2022). How Do Renewable Energy, Economic Growth and Natural Resources Rent Affect Environmental Sustainability in a Globalized Economy? Evidence From Colombia Based on the Gradual Shift Causality Approach. Frontiers in Energy Research, 9(1). https://doi.org/10.3389/fenrg.2021.739721
Byaro, M., Nkonoki, J., & Mafwolo, G. (2022). Exploring the nexus between natural resource depletion, renewable energy use, and environmental degradation in sub-Saharan Africa. Environmental Science and Pollution Research, 30. https://doi.org/10.1007/s11356-022-23104-7
Chou, C.-H., Ngo, S. L., & Tran, P. P. (2023). Renewable Energy Integration for Sustainable Economic Growth: Insights and Challenges via Bibliometric Analysis. Sustainability, 15(20), 15030. https://doi.org/10.3390/su152015030
Frankel, J. A. (1995). Financial markets and monetary policy. Mit Press.
Ghalieb Mutig Idroes, Hardi, I., Md. Hasanur Rahman, Mohd Afjal, Teuku Rizky Noviandy, & Rinaldi Idroes. (2024). The dynamic impact of non-renewable and renewable energy on Indonesia's carbon dioxide emissions and ecological footprint. Carbon Research, 3(1). https://doi.org/10.1007/s44246-024-00117-0
Güney, T. (2019). Renewable energy, non-renewable energy and sustainable development. International Journal of Sustainable Development & World Ecology, 26(5), 389–397. https://doi.org/10.1080/13504509.2019.1595214
Havranek, T., Horvath, R., Zeynalov, & Ayaz. (2016). A Service of zbw Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics. https://www.econstor.eu/bitstream/10419/174170/1/wp_2016_03_havranek_et_al.pdf
José, K., & Lauter, L. (2016). The Impact of Natural Resources on Economic Development in Africa. https://archives.kdischool.ac.kr/bitstream/11125/31904/1/The%20Impact%20of%20natural%20resources%20on%20economic%20development%20in%20Africa.pdf
Kabeyi, M. J. B., & Olanrewaju, O. A. (2022). Sustainable Energy Transition for Renewable and Low Carbon Grid Electricity Generation and Supply. Frontiers in Energy Research, 9(1). https://doi.org/10.3389/fenrg.2021.743114
Khan, A., Chenggang, Y., Hussain, J., Bano, S., & Nawaz, Aa. (2020). Natural resources, tourism development, and energy-growth-CO2 emission nexus: A simultaneity modeling analysis of BRI countries. Resources Policy, 68, 101751. https://doi.org/10.1016/j.resourpol.2020.101751
Kim, D.-H., & Lin, S.-C. (2015). Natural Resources and Economic Development: New Panel Evidence. Environmental and Resource Economics, 66(2), 363–391. https://doi.org/10.1007/s10640-015-9954-5
Le, T.-H., Chang, Y., & Park, D. (2020). Renewable and Nonrenewable Energy Consumption, Economic Growth, and Emissions: International Evidence. The Energy Journal, 41(2), 73–92. https://www.jstor.org/stable/26902798
Long, W., Ali, A., Ji, H., Chen, J., & Ni, G. (2023). Links between renewable and non-renewable energy consumption, economic growth, and climate change, evidence from five emerging Asian countries. Environmental Science and Pollution Research, 30(35), 83687–83701. https://doi.org/10.1007/s11356-023-27957-4
Mosconi, E. M., Colantoni, A., Gambella, F., Cudlinová, E., Salvati, L., & Rodrigo-Comino, J. (2020). Revisiting the Environmental Kuznets Curve: The Spatial Interaction between Economy and Territory. Economies, 8(3), 74. https://doi.org/10.3390/economies8030074
Mughal, N., Arif, A., Jain, V., Chupradit, S., Shabbir, M. S., Ramos-Meza, C. S., & Zhanbayev, R. (2022). The role of technological innovation in environmental pollution, energy consumption and sustainable economic growth: Evidence from South Asian economies. Energy Strategy Reviews, 39, 100745. https://doi.org/10.1016/j.esr.2021.100745
Pandey, A., & Asif, M. (2022). Assessment of energy and environmental sustainability in South Asia from the Sustainable Development Goals perspective. Renewable and Sustainable Energy Reviews, 165, 112492. https://doi.org/10.1016/j.rser.2022.112492
Režný, L., & Bureš, V. (2019). Energy Transition Scenarios and Their Economic Impacts in the Extended Neoclassical Model of Economic Growth. Sustainability, 11(13), 3644. https://doi.org/10.3390/su11133644
Shabbir, A., Kousar, S., & Kousar, F. (2020). The role of natural resources in economic growth: new evidence from Pakistan. Journal of Economics, Finance and Administrative Science, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jefas-03-2019-0044
Wang, R., Tan, J., & Yao, S. (2021). Are natural resources a blessing or a curse for economic development? The importance of energy innovations. Resources Policy, 72, 102042. https://doi.org/10.1016/j.resourpol.2021.102042
Wen, Y., Onwe, J. C., Haseeb, M., Saini, S., Matuka, A., & Sahoo, D. (2022). Role of technological innovation, renewable and non-renewable energy, and economic growth on environmental quality. Evidence from African countries. Frontiers in Energy Research, 10. https://doi.org/10.3389/fenrg.2022.958839
Zhang, J., Li, Z., Ali, A., & Wang, J. (2023). Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies. PLOS ONE, 18(8), e0289720–e0289720. https://doi.org/10.1371/journal.pone.0289720