Are too many natural resources to blame for the shape of the Environmental Kuznets Curve in resource-based economies?. (October 2020)

• Record Type: Journal Article
• Authors: Badeeb, Ramez Abubakr; Lean, Hooi Hooi; Shahbaz, Muhammad
• Is Part Of: Resources policy. Volume 68(2020)
• Publication Date: 2020-10
• Subjects: Environmental kuznets curve -- Natural resource curse -- CO2 emission; C22 -- O13 -- O44 -- O32; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2020.101694
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: This paper proposes the role of natural resource dependence (NRD) in the conventional Environmental Kuznets Curve (EKC) hypothesis in resource-based countries. We set up three hypotheses to challenge the conventional EKC hypothesis. Empirically, we find that NRD strengthens the relationship between economic growth and CO2 emissions while weakens the relationship between the quadratic of economic growth and CO2 emissions. This infers that the EKC pattern in resource-based countries does not follow the conventional EKC pattern due to natural resource curse mechanism. Our results imply that the EKC mechanism per se does not explain the growth–environment nexus in resource-based countries. The explanation is rather found in a mix of both EKC and natural resource curse hypotheses. Highlights: Provide new paradigm of natural resource dependence (NRD) in the conventional EKC framework. We set up three hypotheses to challenge the conventional EKC. NRD strengthen the relationship between economic growth and CO2 emissions. NRD weaken the relationship between the quadratic of economic growth and CO2 emissions. NRD has moderating impact the growth–environment nexus in resource-based countries.