Environmental cost of natural resource rents based on production and consumption inventories of carbon emissions: Assessing the role of institutional quality. (December 2021)

• Record Type: Journal Article
• Authors: Nwani, Chinazaekpere; Adams, Samuel
• Is Part Of: Resources policy. Volume 74(2021)
• Publication Date: 2021-12
• Subjects: Natural resource rents -- Consumption-based carbon emissions -- Production-based carbon emissions -- Quality of governance -- IV Mean Group estimator; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2021.102282
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: The association between resource rents, energy intensity, trade and disaggregated CO2 emissions is examined for 93 nations spanning 23 years (1995–2017), while accounting for the quality of government (QoG). The results show that natural resource rents have positive and statistically significant impact on both consumption-based and production-based carbon emissions in the Low QoG countries. For the Upper-High QoG countries, the estimates show statistically insignificant impact on consumption-based carbon emissions and significantly negative (decreasing) impact on production-based emissions. The results also provide evidence that economic growth and import trade have stronger degrading impact on the environment in the Low QoG countries. Based on these results, we conclude that quality of governance plays important role in how natural resources rents are used and consequently their impacts. Highlights: Impact of natural resource rents on CO2 emissions examined. 93 countries ranked based on their quality of government index. CO2 emission disaggregated into consumption-based and production-based. Institutional quality reduces the environmental impact of resource rents.