The existing literature lacks empirical nexus of natural resources tax (TNRT) volatility and economic performance. Also, the digital economy is currently a hot issue among researchers and ...policy-makers. Therefore, the current study investigates TNRT volatility and economic performance – while adopting the role of digital economy (DEE), financial development (FD), technological innovation (TI), research and development expenditures (RDE). This study examines 30 Chinese provinces covering the period from 2006 to 2017. Using the panel quantile regression, this study explores that TNRT volatility, DEE, FD, and TI significantly increase economic performance in all the quantiles (Q0.25, Q0.50, Q0.75). However, RDE is found positive and significant only in Q0.25, Q0.50, while insignificant in Q0.75. The findings of quantile regression are robust, as confirmed by the panel dynamic ordinary least square (DOLS). Besides, the Dumitrescu and Hurlin (2012) Granger panel causality test unveil a bidirectional causal nexus between TNRT, FD, TI, RDE and economic performance, while no causal nexus is detected between DEE and economic performance. This study recommends adopting and enhancing the digital economy, financial development, technological innovation, and research and development.
•Natural Resources Tax Volatility and Economic Performance are investigated.•Considers the role of digital economy, financial development and innovation.•Panel quantile regression and causality tests are utilized.•Total natural resources and all other variables promote economic performance.•Bidirectional causality exists between economic performance and variables.
The empirical investigation of tourism and natural resources in energy-growth-CO2 emission nexus is carried out in simultaneous equations framework for 51 “Belt & Road Initiative (BRI) countries” ...over 1990–2016. The dependent variables in four systems of equations are income, CO2 emission, energy use, and tourism development index. Empirics from difference and system GMM diagnosed the feedback effect between energy use and income; also validated energy push CO2 emission in conjunction with EKC for BRI countries. The results supported bidirectional causality between tourism and income; moreover, tourism push emission hypothesis validated for BRI countries. On the other hand, natural resources are contributing to tourism development, energy use, and CO2 emission in BRI countries. Additionally, natural resources are contributing negatively and significantly to income, thus obeying the natural resource curse phenomenon. So, the allocation of funds on green infrastructure are required to improve the environmental quality and benefit through green tourism. Moreover, the implementation of conservation policies on “natural resources” can help the GDP growth, environmental quality, and tourism sector on a single platform.
•This study employed system of four equations under dynamic framework of GMM.•Tourism development index is developed based on different indicators of tourism.•Feedback hypothesis exists between income and energy use.•Tourism led emission, and two-way causality between tourism and growth is validated.•The natural resource curse theory is also supported.
Natural resources and economic growth nexus have been extensively investigated since the last three decades and still the debate is in progress. However, in the current times, natural resources ...prices volatility got importance as natural resources prices are playing crucial role in economic growth by regulating economic activities, which is relatively less studied. Natural resources price volatility and economic performance nexus have set new trends for scholars and policy-makers. Volatility in natural resources could have a detrimental impact on the economic performance of a country or region. In this regard, the current study aims to identify the relationship between them while considering the role of green innovation in the BRICS economies between 1990 and 2021. Employing the cross-sectionally augmented autoregressive distributive lags (CS-ARDL) approach, the results revealed that natural resource volatility, oil rents, natural gas rents, and green innovation positively influence the economic performance in both short-run and long-run. These results are found robust as verified by the long-run estimator augmented mean group (AMG). Besides, the Dumitrescu and Hurlin (2012) Granger panel causality heterogeneous test unveil a bidirectional causal association between the under discussion variables and economic performance. Based on the empirical findings, this study recommends that natural resources hedging, price freezing or ceiling, and promoting green innovation could be remedial measures to improve economic performance further and reduce natural resources price volatility in the region.
•Natural resource price volatility and BRICS′ economic performance is tested.•The role of green innovation has been empirically investigated.•The study employed CS-ARDL and AMG estimators.•Bidirectional causal association relation is found between the variables.•All the variables significantly promote economic performance in the region.
Recently, energy transition is an essential element for global development and needs the attention of recent researchers and policymakers. Thus, the present research investigates the impact of ...natural resources (total natural resources rent and natural gas rent) and economic factors (energy import, economic growth, and population growth) on the energy transition in China. Secondary data were collected from world development indicators (WDI) from 1971 to 2019. The Augmented Dickey-Fuller (ADF) test, Phillips–Perron (PP) test, Kwiatkowski–Phillips–Schmidt–Shin (KPSS) and “zivot-andrews structural break unit root” test was also utilized to check for stationarity among the autoregressive distributed lag model (ARDL) along with the error correction model (ECM) were used to examine the relationships between constructs. The results found that natural resources (total natural resources rent and natural gas rent) and economic factors (energy import, economic growth, and population growth) have a positive association with energy transition in China. The study concluded that energy transition is the essential requirement due to high usage of natural resources and high economic development. These results are helpful for energy sector regulators when formulating the rules and regulations related to energy transition in the country.
•Energy transition is the necessary element for high global development and control over environmental degradation globally.•The usage of natural resources leads towards the energy transition.•The economic factors such as economic growth, population growth and energy import also force the energy transition due to high carbon emission.•The regulators must provide the effective policies regarding implementation of energy transition worldwide.
This study aims to empirically explore the long-run and causality relationship between energy consumption, oil rent, total natural resources rent, economic growth, and CO2 emission for a top ...oil-exporting country (Saudi Arabia). In this study, we rely on the modified Wald test of Toda-Yamamoto methodology to investigate the direction of causality between the highlighted variables between 1971 and 2016 on an annual frequency. The empirical result shows a long-run equilibrium relationship between the variables as outlined by Pesaran Bounds test. The long-run regression validates the energy-induced environmental pollution as seen where a 1% increase in energy consumption depletes environment by 0.360% and 0.983% in both short and long-run periods, respectively. Similarly, there is increased economic growth-induced environment degradation by 0.952% and 0.625% in both the short and long-run period, respectively, over the sampled period. Furthermore, a significant positive nexus is seen between the country's' total natural resource rent and CO2 emissions in both the short and long run. This suggests the over-reliance on natural resource rent affects environmental sustainability in Saudi Arabia if conservation and management options are neglected. Interestingly, oil rent shows evidence to dampen the effect of environmental degradation in Saudi Arabia. In the causality analysis, a feedback relationship is seen between energy consumption and economic growth while one-way causality is observed between energy consumption and CO2 emission; similar unidirectional causality is seen between oil rent and CO2 emission. These outlined results have environmental implications for policy makers and practitioners to present a macroeconomic blueprint, as we see energy conservative agenda will hurt economic progress in Saudi Arabia. However, given increase, energy consumption increases economic growth and its environmental implications call for sustainable and green energy sources, such as renewables, in Saudi Arabia's energy mix. More insights and policy direction are highlighted in the concluding section.
•This study explores Saudi Arabia's energy-environment growth nexus.•There exists a long run equilibrium relationship between study variables.•One-way causality is seen between energy consumption and CO2 emission.•An increase in GDP growth by 1% increases CO2 emission in Saudi Arabia.•A trade-off nexus between environmental quality and economic development.
Using an extended Kaya decomposition, we identify the drivers of long-run CO2 emissions since 1800 for Denmark, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden, the UK, the United ...States, Canada and Japan. By considering biomass and carbon-free energy sources along with fossil fuels, we are able to shed light on the effects of past and present energy transitions on CO2 emissions. We find that at low levels of income per capita, fuel switching from biomass to fossil fuels is the main contributing factor to emissions growth. As income levels increase, scale effects, especially income effects, become dominant. Technological change proves to be the main offsetting factor in the long run. Particularly in the last decades, technological change and fuel switching have become important contributors to the decrease in emissions in Europe. Our results also contrast the differentiated historical paths of CO2 emissions taken by these countries.
•We study the long-run drivers of CO2 emissions in twelve developed economies.•We use novel data and apply an extended Kaya decomposition.•At low levels of income per capita, fuel switching is usually the main CO2 driver.•Scale effects are most important at higher levels of income and in the long-run.•Technological change is the main offsetting factor in the long-run.
The determinants of natural resources rents have been extensively analyzed in the resources economics and policy literature; however, the role of geopolitical risk and uncertainty in rents remains ...unexplored. Given that these indicators are rather volatile and thus important to discover for developing countries which own a large portion of natural resources in the world, this study aims to examine the effects of geopolitical risk and economic policy uncertainty on natural resources rents in a group of developing economies by applying the novel panel quantile estimation technique on the panel data over 1985–2018. The empirical results suggest that geopolitical risk has a negative impact on the natural resources rents for all quantiles while economic growth increases natural resources rents across middle-and-high quantiles. In contrast, the influence of economic policy uncertainty on resources rents varies across the quantiles. The uncertainty increases natural resources rents in low quantiles and decreases rents in high quantiles. Thus, quantile regression results reveal heterogeneous impacts of the selected main determinants of natural resources rents. Important policy implications are further discussed in the study.
•The effects of geopolitical risk and economic policy uncertainty on rents are analyzed.•The panel of developing countries are chosen as a sample group.•The panel quantile regression is employed for empirical estimation.•Geopolitical risk decreases natural resources rents for all quantiles.
