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How do minerals affect the global energy transition? Metallic versus non-metallic mineral

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  • Liu, Yang
  • Dong, Kangyin
  • Taghizadeh-Hesary, Farhad
  • Dong, Xiucheng

Abstract

Mineral resources play a crucial role in the development of renewable energy sources, yet they also bring about environmental burdens such as pollution, carbon emissions, and resource depletion. Considering this dual impact, it is imperative to further elucidate the influence of mineral consumption (including both metallic and non-metallic minerals) on the transition to renewable energy. This work aims to address this gap. To achieve this objective, we conduct empirical examinations employing a balanced panel dataset encompassing 55 countries worldwide from 2000 to 2020 and explore potential heterogeneity and mechanisms. The empirical results reveal that both metallic and non-metallic mineral consumption act as inhibitory factors on renewable energy transition, with metallic minerals exhibiting a more significant influence. Furthermore, this impact is not consistent; it becomes more pronounced in samples with lower government quality, and the effect gradually intensifies as the quantile increases. We also identify the critical moderating roles played by financial development, human capital, and industrial structure upgrading in the relationship. However, their effects on metallic and non-metallic mineral consumption exhibit variations. This study contributes by recognizing the relationship between mineral consumption and energy transition under the environmental impact of mineral extraction. The verified evidence assists policymakers in developing and adjusting mineral-related strategic decisions.

Suggested Citation

  • Liu, Yang & Dong, Kangyin & Taghizadeh-Hesary, Farhad & Dong, Xiucheng, 2024. "How do minerals affect the global energy transition? Metallic versus non-metallic mineral," Resources Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724003428
    DOI: 10.1016/j.resourpol.2024.104975
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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