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More than the resource curse: Exploring the nexus of natural resource abundance and environmental quality in northwestern China

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  • Ahmad, Fayyaz
  • Draz, Muhammad Umar
  • Chang, Wei-Yew
  • Yang, Su-Chang
  • Su, Lijuan

Abstract

The recent worldwide shift towards sustainable development has led to substantial focus on environmental issues due to energy consumption. Although the existing literature on energy, development and environment is rich, only a handful of studies have investigated the impact of resource abundance on environmental pollution. Therefore, this study examines the association of natural resources and environmental quality in five northwestern provinces of China using annual data form 1995 to 2017. The structural break test confirms that variables are stationary with a mixed trend for all provinces. The results of fully modified ordinary least squared test vary among provinces stating that resources are associated with environmental pollution in four provinces; this deteriorating impact is more significant in Xinjiang and Shaanxi as compared to Gansu and Ningxia. However, the results for Qinghai province indicate that natural resource availability improves environmental quality and reduces CO2 emissions; nonrenewable energy and economic development deteriorate the environment in this province. Nevertheless, renewable energy sources outweigh the nonrenewable energy in terms of environmental sustainability and promote green development in northwestern China; furthermore, our estimations do not confirm the environmental Kuznets curve hypothesis in all provinces. The robustness check confirms a long term connection for all variables and the causality analysis show diverse results for the selected provinces. The study provides important policy implications about research and development and the role of China's central government to promote sustainable development.

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  • Ahmad, Fayyaz & Draz, Muhammad Umar & Chang, Wei-Yew & Yang, Su-Chang & Su, Lijuan, 2021. "More than the resource curse: Exploring the nexus of natural resource abundance and environmental quality in northwestern China," Resources Policy, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:jrpoli:v:70:y:2021:i:c:s0301420720309338
    DOI: 10.1016/j.resourpol.2020.101902
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    Cited by:

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    2. Wu, Linfei & Sun, Liwen & Qi, Peixiao & Ren, Xiangwei & Sun, Xiaoting, 2021. "Energy endowment, industrial structure upgrading, and CO2 emissions in China: Revisiting resource curse in the context of carbon emissions," Resources Policy, Elsevier, vol. 74(C).
    3. Kuang, Yunming & Lin, Boqiang, 2022. "Natural gas resource utilization, environmental policy and green economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 79(C).
    4. Lin, Shu & Yuan, Ying, 2023. "China's resources curse hypothesis: Evaluating the role of green innovation and green growth," Resources Policy, Elsevier, vol. 80(C).
    5. Afzal, Ayesha & Hasnaoui, Jamila & Noor, Ramsha & Banerjee, Arindam, 2023. "Is saving the non-renewable resources worthwhile? Evidence of paradox of plenty on human capital development," Resources Policy, Elsevier, vol. 83(C).
    6. Fu, Haoliang & Guo, Wenwei & Sun, Zheng & Xia, Ting, 2023. "Asymmetric impact of natural resources rent, monetary and fiscal policies on environmental sustainability in BRICS countries," Resources Policy, Elsevier, vol. 82(C).
    7. Oteng-Abayie, Eric Fosu & Duodu, Emmanuel & Mensah, Gideon & Frimpong, Prince Boakye, 2022. "Natural resource abundance, environmental sustainability, and policies and institutions for environmental sustainability in sub-Saharan Africa," Resources Policy, Elsevier, vol. 79(C).
    8. Canh Phuc Nguyen & Sangho Kim & Thanh Dinh Su, 2022. "The Nonlinear Relationship Between Entrepreneurship and Natural Resource Rents," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 632-662, November.
    9. Tadadjeu, Sosson & Njangang, Henri & Woldemichael, Andinet, 2023. "Are resource-rich countries less responsive to global warming? Oil wealth and climate change policy," Energy Policy, Elsevier, vol. 182(C).
    10. Geng, Qianqian & Wang, Ying & Wang, Xiaoqing, 2023. "The impact of natural resource endowment and green finance on green economic efficiency in the context of COP26," Resources Policy, Elsevier, vol. 80(C).
    11. Luo, Keyu & Wang, Qi & Liang, Chao, 2022. "The way to break the resource curse: New evidence from China," Resources Policy, Elsevier, vol. 79(C).

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