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Exploitation of Natural Resources and Carbon Transfer in Trade

Author

Listed:
  • Blaise P. Likamata

    (Yaoundé, Cameroon)

  • Simplice Asongu

    (Pretoria, South Africa)

  • Dieudonné Mignamissi

    (Yaoundé, Cameroun)

Abstract

This paper analyzes the impact of natural resource exploitation on carbon transfer in international trade, using a severity model estimated by the Pseudo-Poisson Maximum Likelihood High Dimension Fixed Effects (PPMLHDFE) estimator and embodied carbon data from the Enriched Open-Source Multi-Region Input-Output Database (EORA), covering 106 exporting and 114 importing countries over the period 1999–2021. The study demonstrates that natural resource exploitation significantly increases the carbon emissions associated with exported goods. The effect varies according to the type of resource and the income level of the countries, being moderate in low-income economies and more pronounced in middle- and high-income economies. This work contributes to the literature by providing a comprehensive empirical analysis and offering recommendations to guide public policies and industrial strategies toward an effective reduction of embodied carbon while supporting economic development and the energy transition. Policy implications are discussed.

Suggested Citation

  • Blaise P. Likamata & Simplice Asongu & Dieudonné Mignamissi, 2026. "Exploitation of Natural Resources and Carbon Transfer in Trade," Working Papers of the African Governance and Development Institute. 26/052, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:26/052
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    Keywords

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    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • F10 - International Economics - - Trade - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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