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Disaggregating the impact of natural resource rents on environmental sustainability in the MENA region: A quantile regression analysis

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  • Bilgili, Faik
  • Soykan, Erkan
  • Dumrul, Cüneyt
  • Awan, Ashar
  • Önderol, Seyit
  • Khan, Kamran

Abstract

The main contribution of this paper is to analyze the disaggregated impact of natural resource rents on environmental sustainability in the MENA region. While previous literature has explored the overall effect of rents, this study focuses on the specific impacts of rents from forests, minerals, and oil. To do so, a novel quantile method based on moments is employed to analyze long-run heterogeneous impacts at various quantile levels of environmental conditions. The results from the quantile regression reveal that forest rent improves environmental quality, while rents from oil and minerals deteriorate environmental conditions. The study also found that economic growth and fossil fuel use led to an upsurge in carbon dioxide emissions, whereas renewable energy sources showed the potential in mitigating environmental issues. The study provides valuable insights for policymakers to achieve sustainable development goals in the MENA region.

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  • Bilgili, Faik & Soykan, Erkan & Dumrul, Cüneyt & Awan, Ashar & Önderol, Seyit & Khan, Kamran, 2023. "Disaggregating the impact of natural resource rents on environmental sustainability in the MENA region: A quantile regression analysis," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723005366
    DOI: 10.1016/j.resourpol.2023.103825
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