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Natural resources extraction and sustainable environment: COP26 perspective for China

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  • Cai, Yurong
  • Zhou, Pengfei
  • Zhang, Yiting
  • Shen, Yang

Abstract

The accumulation of CO2 in the environment has increased for many years resultant of diverse human beings' jobs such as over-exploitation of natural resources and forest destruction notably. The rapidly increasing industrial sector, as well as high economic development, have resulted in large increases in natural resource usage and CO2 emissions worldwide. As a result, this study investigates the impact of natural resources on carbon emissions, as well as other critical control factors such as forest exploitation, technological innovation, and GDP in China from 1989 to 2021. To investigate the case of China, the authors employ time series data and the most relevant time series data econometrics approaches for a long-run relationship, such as FMOLS, DOLS, and CCR, to monitor changes in the variables over time, which is valuable in empirical evidence. The primary outcomes of the models are as follows. The Bayer-Hanck cointegration tests confirm that the selected variables have long-run cointegration. FMOLS, DOLS, and CCR were used to examine the long-run influence of the selected variables. Disaggregate overall findings for coal, forest, gas and mineral rents produce positive impact on emissions. These findings have policy implications for halting the overexploitation of natural resources and the continued logging of China's forests.

Suggested Citation

  • Cai, Yurong & Zhou, Pengfei & Zhang, Yiting & Shen, Yang, 2023. "Natural resources extraction and sustainable environment: COP26 perspective for China," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723002416
    DOI: 10.1016/j.resourpol.2023.103530
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