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The asymmetric effect of natural resource abundance on economic growth and environmental pollution: Evidence from resource-rich economy

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  • Sun, ZhiQiang
  • Wang, Qizhen

Abstract

The paper selects 30 regions of China and uses the system GMM model to verify the impact of natural resources on environmental pollution and economic growth from 2000 to 2019. The conclusions are as follows: the impact of natural resources on environmental pollution is significantly negative, passing the test at the 1% significance level, and the elasticity coefficient is −0.0483, indicating that the development of natural resources has a significant negative effect on the environment; natural resources have a significant negative effect on economic growth. The impact of is significantly negative, passing the test at the 10% significance level, and the elasticity coefficient is −0.0178, indicating that economic growth and natural resources have a significantly negative correlation, confirming the existence of China's “resource curse” effect. From the analysis of the significance level and elasticity coefficient, we see that there is a significant imbalance in terms of the impact of natural resources on environmental pollution and economic growth. The article has important reference significance for China to address the imbalance of impacts and adopt policies to mitigate the negative effects of natural resource development.

Suggested Citation

  • Sun, ZhiQiang & Wang, Qizhen, 2021. "The asymmetric effect of natural resource abundance on economic growth and environmental pollution: Evidence from resource-rich economy," Resources Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721001008
    DOI: 10.1016/j.resourpol.2021.102085
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