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Can globalization and the green economy hedge natural resources? Functions of population growth and financial development in BRICS countries

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  • Xuan, Di
  • Jiang, Xiaoyan
  • Fang, Yan

Abstract

Resource efficiency is vital for cities to move towards a green economy and contribute to global sustainability. Through the proximity of economic activity, they facilitate efficiency gains and technological advancements, reduce resource and energy consumption, and provide more options for societies. This paper examines whether globalization and the green economy hedge natural resources under the functions of population growth and financial development in BRICS countries from 1990 to 2021. Our analysis includes variance inflation factor, slope heterogeneity, and second-generation advanced econometric methodologies. The results of our research indicate that globalization, and the green economy, decrease natural resource rents, whereas the development of the financial sector and population growth increase those rents. The conclusion is reached that Managing globalization sustainably requires a practical framework, policies that promote green growth consider the fact that natural assets cannot be replaced indefinitely, and policies that promote green growth are essential for sustainable, inclusive, and strong growth. Research limitations and future directions are discussed.

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  • Xuan, Di & Jiang, Xiaoyan & Fang, Yan, 2023. "Can globalization and the green economy hedge natural resources? Functions of population growth and financial development in BRICS countries," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723001228
    DOI: 10.1016/j.resourpol.2023.103414
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