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Sustainable development goals perspective of natural resources: Does it paves the way for renewable sources of energy? A global case study

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  • Wang, Xinghua
  • Su, Chi-Wei
  • Xue, Ziru
  • Xie, Xin

Abstract

The persistent challenge in sustainable development is understanding the correlation between renewable energy consumption and natural resource rents, especially in the context of global economic growth. Existing literature has shed light on the aspects of resource growth and emissions, but the precise relationship between resource rents and renewable energy remains unexplored. This study analyzes global data from 1988 to 2021 using different time series econometric techniques to investigate this relationship. This study analysis reveals a long-term co-integration between renewable energy consumption and variables such as GDP, mineral rents, oil rents, and natural gas rents. The empirical results demonstrate a favorable and statistically significant relationship between economic growth and renewable energy consumption. Moreover, the results indicate that while natural gas and mineral rents negatively affect the sustainability of renewable energy, oil rents appear to have a positive effect on renewable energy consumption. These findings are significant as they suggest that a strategic realignment of how we approach and manage natural resource revenues is required to fully exploit the potential of renewable energy in fostering economic growth and preserving natural resources.

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  • Wang, Xinghua & Su, Chi-Wei & Xue, Ziru & Xie, Xin, 2023. "Sustainable development goals perspective of natural resources: Does it paves the way for renewable sources of energy? A global case study," Resources Policy, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pb:s0301420723007869
    DOI: 10.1016/j.resourpol.2023.104075
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