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Nexus between Natural Resources and Environmental Degradation: Analysing the Role of Income Inequality and Renewable Energy

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  • Yongming Wang

    (Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093, China)

  • Irfan Uddin

    (Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093, China)

  • Yingmei Gong

    (Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093, China)

Abstract

Globally, as the environment deteriorates, use of renewable energy is increasing. The discrepancy between inequalities, sustainable sources, and natural resources, on the other hand, is enormous. As a consequence, the current research simulated the link between income inequality, renewable energy, and carbon emissions from 1990 to 2018. The long run and short run interaction were estimated using an autoregressive distribution lag (ARDL) model. According to the study’s findings, improvements in sustainable power, as well as income inequality, are producing a rise in environmental quality. Natural resources seem to have a significantly positive influence on the environment’s quality. Furthermore, the study found that financial development and environmental quality have a bidirectional causal link. According to the conclusions of this study, government authorities should support the use of renewable energy, i.e., sources to optimize carbon release.

Suggested Citation

  • Yongming Wang & Irfan Uddin & Yingmei Gong, 2021. "Nexus between Natural Resources and Environmental Degradation: Analysing the Role of Income Inequality and Renewable Energy," Sustainability, MDPI, vol. 13(15), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:15:p:8364-:d:602227
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