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How does geopolitical risk affect CO2 emissions? The role of natural resource rents

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  • Chen, Limei
  • Gozgor, Giray
  • Mahalik, Mantu Kumar
  • Pal, Shreya
  • Rather, Kashif Nesar

Abstract

In a panel dataset of 38 developing and industrialized countries from 1970 to 2021, this study investigates how geopolitical risk and resource rents affect CO2 emissions. After implementing diagnostics, the paper observes significant relationships among CO2 emissions, geopolitical risk, natural resource rents, per capita income, and share of renewable energy in the long run. The panel data estimations show that geopolitical risk, natural resource rents, and per capita income increase CO2 emissions. However, the share of renewable energy is negatively associated with it. The mediation effect of geopolitical risk and natural resource rents on CO2 emissions is also positive. Potential policy repercussions are also discussed.

Suggested Citation

  • Chen, Limei & Gozgor, Giray & Mahalik, Mantu Kumar & Pal, Shreya & Rather, Kashif Nesar, 2023. "How does geopolitical risk affect CO2 emissions? The role of natural resource rents," Resources Policy, Elsevier, vol. 87(PB).
    • Handle: RePEc:eee:jrpoli:v:87:y:2023:i:pb:s0301420723010322
    DOI: 10.1016/j.resourpol.2023.104321
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