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Conflict and natural resource condition: An examination based on national power heterogeneity

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  • Cao, Qian
  • Feng, Zhiying
  • Yang, Runze
  • Yang, Cunyi

Abstract

The impact of geopolitical conflict on natural resource condition, under the lens of national power heterogeneity, is a burgeoning area of research. Previously, scholars predominantly utilized CO2 as a representative indicator for environmental degradation, however, this simplistic approach falls short in explaining the intricate dynamics leading to ecological deficits. In this article, we adopt a more comprehensive indicator, natural resource condition, to better depict the state of environmental degradation for investigative purposes. We employ a double fixed-effects model to investigate the effect of geopolitical conflict on the condition of natural resources, and integrate several proxy indicators of national power to undertake moderating effect and heterogeneity analyses. Our research demonstrates that geopolitical conflict significantly deteriorates a country's natural resource condition, resulting in either a decrease in ecological surplus or an increase in ecological deficit. Additionally, it is found that strengthening a country's overall power can alleviate this adverse impact. The significant influence of this moderating effect is verified through multiple heterogeneity tests differentiated by economic power. More specifically, countries with potent economic power appear to be less affected by geopolitical conflict on their natural resource condition, whereas those with weaker economic power experience more severe negative impacts. Our findings contribute to a broader understanding of the impact of geopolitical conflict on the environment and provide valuable insights for developing countries aiming to alleviate the deterioration of their natural resource condition from a geopolitical perspective.

Suggested Citation

  • Cao, Qian & Feng, Zhiying & Yang, Runze & Yang, Cunyi, 2024. "Conflict and natural resource condition: An examination based on national power heterogeneity," Resources Policy, Elsevier, vol. 89(C).
  • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012606
    DOI: 10.1016/j.resourpol.2023.104549
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    Cited by:

    1. Wu, Junwei & Yang, Cunyi & Chen, Li, 2024. "Examining the non-linear effects of monetary policy on carbon emissions," Energy Economics, Elsevier, vol. 131(C).
    2. Yang, Ping & Lv, Yanqin & Chen, Xiaodan & Lv, Juan, 2024. "Digital finance, natural resource constraints and firms' low-carbon behavior: Evidence from listed companies," Resources Policy, Elsevier, vol. 89(C).
    3. Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong & Dogan, Eyup, 2024. "Influence mechanism of electricity price distortion on industrial green transformation: A spatial analysis of Chinese regions," Energy Economics, Elsevier, vol. 130(C).
    4. Shi, Yang & Li, Jinlong & Fang, Zhen & Li, Ye & Hu, Han & Nie, Wei & Meng, Fuyu, 2024. "Probing the role of natural resources and urbanization towards ecological sustainability in BRICST economies," Resources Policy, Elsevier, vol. 91(C).
    5. Zou, Qizhi & Wu, Qian & Wang, Jia, 2024. "Is natural resources curse possible under the digitalization? A loon on top digitalized economies," Resources Policy, Elsevier, vol. 92(C).
    6. Hao, Xiaoli & Li, Ke & Ren, Siyu & Sun, Qingyu & Hu, Weitao & Xue, Yan, 2024. "How green investment significantly relieves resource curse? A new perspective from fiscal decentralization," Resources Policy, Elsevier, vol. 94(C).
    7. Murshed, Muntasir, 2024. "Can resolving geopolitical tensions help South Asian countries elude the carbon curse of natural resources?," Resources Policy, Elsevier, vol. 90(C).
    8. Bie, Fan & Zhou, Luyao & Liu, Shuo & Yang, Tao, 2024. "Government digital transformation, resource curse and green total factor energy efficiency in Chinese cities," Resources Policy, Elsevier, vol. 92(C).
    9. Xue, Yan & Chen, Li & Feng, Zhiying & Huang, Yunying, 2024. "Breaking the resource curse: Heterogeneous effects of digital government," Resources Policy, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Geopolitical risk; Ecological condition; National power; Economic power; Moderating effect; Heterogeneity;
    All these keywords.

    JEL classification:

    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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