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Sustainable development and resources extraction: A novel perspective for resources rich economies

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  • Zhang, Bo
  • Zhao, Meiyu
  • Tu, Yongqian

Abstract

The link between resources and sustainable development has not been explored, especially in resource-rich economies. Natural resource rents are viewed as a source of additional revenue for governments. There are still contradictions in the economic effect of natural resources, which can be beneficial in certain economies but detrimental in others. The current study re-examined the link between natural resources and the economy's growth in the BRICS countries from 1990 to 2021 by assessing the effect of mineral, forest rents and financial market risk. The study investigates the long-run co-integration of the study variables utilizing panel data specifications. Throughout the quantiles, mineral resources adversely influence economic performance, while forest rents have an imbalanced impact on regional economic performance. Financial market risk, on the other hand, has no detrimental influence on the selected countries' economic performance. This research recommends using natural resources more responsibly, increasing renewables, and reducing financial market risk to achieve sustainable development.

Suggested Citation

  • Zhang, Bo & Zhao, Meiyu & Tu, Yongqian, 2023. "Sustainable development and resources extraction: A novel perspective for resources rich economies," Resources Policy, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:jrpoli:v:83:y:2023:i:c:s0301420723003069
    DOI: 10.1016/j.resourpol.2023.103595
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