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The role of resource rent in shaping CO2 emissions in BRICS countries: A panel data approach

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  • Cai, Xiaotong
  • Li, Kun
  • Wang, Wenhua
  • Lu, Yuxin
  • Wang, Rui

Abstract

This study investigates the impact of resource rent on CO2 emissions in the presence of GDP, renewable energy consumption, and research and development spending for BRICS nations from 1990 to 2020. Employing quantile regression approach, this study finds that resource rents are responsible for rising CO2 emissions in BRCIS countries. However, there exists a threshold level of resource rents beyond which the nature of the relationship between variables changes. Since, the extraction of natural resources requires a significant amount of energy, it may result in excessive levels of energy consumption as well as the reckless discharge of waste chemicals into the water, land, and air. We find that the impact of GDP on CO2 emissions is greater for nations with a low level of CO2 emissions and is lower for nations with relatively high CO2 emissions. The findings of the research paper highlight several policy implications for the BRICS nations to reduce their CO2 emissions. Policymakers should prioritize investment in renewable energy sources such as wind, solar, and hydroelectric power and encourage research and development spending in renewable energy technologies. The study encourages channelizing resources revenue for a sustainable environment and development.

Suggested Citation

  • Cai, Xiaotong & Li, Kun & Wang, Wenhua & Lu, Yuxin & Wang, Rui, 2023. "The role of resource rent in shaping CO2 emissions in BRICS countries: A panel data approach," Resources Policy, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723005688
    DOI: 10.1016/j.resourpol.2023.103857
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