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Natural Resource Wealth and Depletion: Exploring the Economic, Energy, and Environmental Impacts of Mineral Rents and Mineral Depletion

Author

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  • Muhammad Irfan Latif
  • Khalid Mughal
  • Muhammad Afzal
  • Durdana Qaiser Gillani

Abstract

Natural resources play a crucial role in economic growth and policy formulation. Energy production and consumption are essential for economic development, while carbon dioxide damage poses significant challenges. Mineral rents can contribute to government revenue, but mineral depletion requires sustainable practices to ensure long-term viability. Balancing economic growth with environmental sustainability is crucial to ensure a resilient and prosperous future. This paper examines the impact of mineral depletion and rents on carbon dioxide damage in China from 1990 to 2021, considering the availability of clean fuels and technologies for cooking, energy use, and export value index as moderating variables. The long-run results of FMOLS explain that mineral depletion and mineral rents are 10% significant. Access to clean fuels, energy use, and export value index is 1% significant. Mineral depletion, access to clean fuels and technologies for cooking, and export value index are negatively associated with carbon dioxide damage in China. Mineral resource rents and energy use are positively associated with carbon dioxide damage in China. By adopting sustainable practices and considering mineral rents and depletion, the Chinese government can optimize natural resource utilization and ensure long-term development. Implementing appropriate policies and strategies will benefit China's economy and contribute to the global efforts towards a greener and more resource-efficient world.

Suggested Citation

  • Muhammad Irfan Latif & Khalid Mughal & Muhammad Afzal & Durdana Qaiser Gillani, 2025. "Natural Resource Wealth and Depletion: Exploring the Economic, Energy, and Environmental Impacts of Mineral Rents and Mineral Depletion," Journal of Economic Impact, Science Impact Publishers, vol. 7(1), pages 94-102.
    • Handle: RePEc:adx:journl:v:7:y:2025:i:1:p:94-102
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