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Natural Resource Dependency, Political Stability, and Environmental Sustainability in the G7: Role of Operational Behaviors of Multinational Firms Using Quantile Regression

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Listed:
  • Mohammad Ridwan
  • Anowar Hossain
  • Tasfia Mahjabin
  • Md. Emran Hossain
  • Afsana Akther
  • Mohd Ziaur Rehman
  • Md. Eleais

Abstract

This study examines the impact of natural resource dependence, political stability, and the operational behaviors of multinational corporations (MNCs) on CO2 emissions in the G7 region from 1996 to 2021. Due to the non-normal distribution of the data, a quantile regression approach is employed to assess how these factors influence CO2 emissions across different emission levels. The results indicate that economic growth, natural resource reliance, and political stability contribute to higher CO2 emissions, whereas MNCs\' operation al behaviors and renewable energy use significantly reduce emissions. Robustness checks using Driscoll-Kraay Standard Errors, Generalized Least Squares (GLS), and Panel Corrected Standard Errors (PCSE) validate these findings. The causality test further reveals unidirectional causality from GDP, operational behaviors of MNCs, and natural resource rents to CO2 emissions, while renewable energy use exhibits a bidirectional causal relationship with emissions.

Suggested Citation

  • Mohammad Ridwan & Anowar Hossain & Tasfia Mahjabin & Md. Emran Hossain & Afsana Akther & Mohd Ziaur Rehman & Md. Eleais, . "Natural Resource Dependency, Political Stability, and Environmental Sustainability in the G7: Role of Operational Behaviors of Multinational Firms Using Quantile Regression," Politická ekonomie, Prague University of Economics and Business, vol. 0.
    • Handle: RePEc:prg:jnlpol:v:preprint:id:1511
    DOI: 10.18267/j.polek.1511
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