IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/113736.html
   My bibliography  Save this paper

Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador
[Influence of the Rent of Natural Resources and Foreign Investment in the Environmental Degradation of Ecuador]

Author

Listed:
  • Flores, Bryan
  • Alvarado, Rafael

Abstract

In Ecuador, the income obtained from the exploitation of natural resources, especially hydrocarbons and minerals, have been consolidated as the basis of economic development, in turn, the lack of economic and technological resources, as many of the developing countries development, have caused these activities to be concessioner to foreign companies, causing a conflict of interest in which the economic benefit has exceeded environmental sustainability. For this reason, the general objective of this research was to evaluate the impact of rent from natural resources and foreign direct investment on environmental degradation in Ecuador during the period 1975-2019, through an econometric study in order to propose policies. that mitigate environmental degradation and promote environmental sustainability. The data was obtained from the World Development Indicators (2021) and time series econometric techniques were used through the implementation of Vector Autoregressive (VAR), Error Correction (VEC) models and the Granger causality test. According to the results obtained, the presence of a short- and long-term equilibrium relationship between total income from natural resources, foreign direct investment and CO2 emissions was verified. Therefore, policies must be aimed at strengthening environmental legislation and providing an optimal environment for business development based on the implementation of environmentally friendly technologies that guarantee the sustainability of resources.

Suggested Citation

  • Flores, Bryan & Alvarado, Rafael, 2022. "Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador [Influence of the Rent of Natural Resources and Foreign Investment in the Environmental," MPRA Paper 113736, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:113736
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/113736/1/MPRA_paper_113736.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    3. Georgescu-Roegen, Nicholas, 1975. "Dynamic models and economic growth," World Development, Elsevier, vol. 3(11-12), pages 765-783.
    4. Opoku, Eric Evans Osei & Boachie, Micheal Kofi, 2020. "The environmental impact of industrialization and foreign direct investment," Energy Policy, Elsevier, vol. 137(C).
    5. Marques, António Cardoso & Caetano, Rafaela, 2020. "The impact of foreign direct investment on emission reduction targets: Evidence from high- and middle-income countries," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 107-118.
    6. Ahmad, Mahmood & Jiang, Ping & Majeed, Abdul & Umar, Muhammad & Khan, Zeeshan & Muhammad, Sulaman, 2020. "The dynamic impact of natural resources, technological innovations and economic growth on ecological footprint: An advanced panel data estimation," Resources Policy, Elsevier, vol. 69(C).
    7. Jun, Wen & Mughal, Nafeesa & Zhao, Jin & Shabbir, Malik Shahzad & Niedbała, Gniewko & Jain, Vipin & Anwar, Ahsan, 2021. "Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission," Energy Policy, Elsevier, vol. 153(C).
    8. Majeed, Abdul & Wang, Lijun & Zhang, Xiaohui & Muniba, & Kirikkaleli, Dervis, 2021. "Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: Fresh evidence from GCC economies," Resources Policy, Elsevier, vol. 73(C).
    9. Khan, Irfan & Hou, Fujun & Le, Hoang Phong & Ali, Syed Ahtsham, 2021. "Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries," Resources Policy, Elsevier, vol. 72(C).
    10. Ahmed, Zahoor & Asghar, Muhammad Mansoor & Malik, Muhammad Nasir & Nawaz, Kishwar, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Resources Policy, Elsevier, vol. 67(C).
    11. Zahoor Ahmed & Muhammad Mansoor Asghar & Muhammad Nasir Malik & Kishwar Nawaz, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Post-Print hal-03557938, HAL.
    12. Peter J G Pearson, 1994. "Energy, Externalities and Environmental Quality: Will Development Cure the Ills it Creates?," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 78, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    13. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    14. Hanif, Imran & Faraz Raza, Syed Muhammad & Gago-de-Santos, Pilar & Abbas, Qaiser, 2019. "Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: Some empirical evidence," Energy, Elsevier, vol. 171(C), pages 493-501.
    15. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    16. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    17. Randall, Alan & Castle, Emery N., 1985. "Land resources and land markets," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 13, pages 571-620, Elsevier.
    18. Pablo Ponce & Cristian Ortiz & Andrea Salinas & Rafael Alvarado, 2019. "Inversión extranjera directa y libertad económica como determinantes del crecimiento económico de Ecuador en el corto y largo plazo," Archivos Revista Economía y Política., Facultad de Ciencias Económicas y Administrativas, Universidad de Cuenca., vol. 29, pages 105-124, Enero.
    19. Agboola, Mary Oluwatoyin & Bekun, Festus Victor & Joshua, Udi, 2021. "Pathway to environmental sustainability: Nexus between economic growth, energy consumption, CO2 emission, oil rent and total natural resources rent in Saudi Arabia," Resources Policy, Elsevier, vol. 74(C).
    20. Ozcan, Burcu & Tzeremes, Panayiotis G. & Tzeremes, Nickolaos G., 2020. "Energy consumption, economic growth and environmental degradation in OECD countries," Economic Modelling, Elsevier, vol. 84(C), pages 203-213.
    21. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hossain, Md. Emran & Islam, Md. Sayemul & Bandyopadhyay, Arunava & Awan, Ashar & Hossain, Mohammad Razib & Rej, Soumen, 2022. "Mexico at the crossroads of natural resource dependence and COP26 pledge: Does technological innovation help?," Resources Policy, Elsevier, vol. 77(C).
    2. Ahmad, Mahmood & Ahmed, Zahoor & Khan, Sana Akbar & Alvarado, Rafael, 2023. "Towards environmental sustainability in E−7 countries: Assessing the roles of natural resources, economic growth, country risk, and energy transition," Resources Policy, Elsevier, vol. 82(C).
    3. Hossain, Mohammad Razib & Rej, Soumen & Awan, Ashar & Bandyopadhyay, Arunava & Islam, Md Sayemul & Das, Narasingha & Hossain, Md Emran, 2023. "Natural resource dependency and environmental sustainability under N-shaped EKC: The curious case of India," Resources Policy, Elsevier, vol. 80(C).
    4. Opoku, Eric Evans Osei & Dogah, Kingsley E. & Aluko, Olufemi Adewale, 2022. "The contribution of human development towards environmental sustainability," Energy Economics, Elsevier, vol. 106(C).
    5. Wang, Wei & Rehman, Mubeen Abdur & Fahad, Shah, 2022. "The dynamic influence of renewable energy, trade openness, and industrialization on the sustainable environment in G-7 economies," Renewable Energy, Elsevier, vol. 198(C), pages 484-491.
    6. Malayaranjan Sahoo & Narayan Sethi, 2022. "The dynamic impact of urbanization, structural transformation, and technological innovation on ecological footprint and PM2.5: evidence from newly industrialized countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4244-4277, March.
    7. Jahanger, Atif & Usman, Muhammad & Murshed, Muntasir & Mahmood, Haider & Balsalobre-Lorente, Daniel, 2022. "The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations," Resources Policy, Elsevier, vol. 76(C).
    8. Udemba, Edmund Ntom & Yalçıntaş, Selin, 2021. "Interacting force of foreign direct invest (FDI), natural resource and economic growth in determining environmental performance: A nonlinear autoregressive distributed lag (NARDL) approach," Resources Policy, Elsevier, vol. 73(C).
    9. Ahmad, Fayyaz & Draz, Muhammad Umar & Chandio, Abbas Ali & Ahmad, Munir & Su, Lijuan & Shahzad, Farrukh & Jia, Mingqi, 2022. "Natural resources and environmental quality: Exploring the regional variations among Chinese provinces with a novel approach," Resources Policy, Elsevier, vol. 77(C).
    10. Siming Zuo & Mingxia Zhu & Zhexiao Xu & Judit Oláh & Zoltan Lakner, 2021. "The Dynamic Impact of Natural Resource Rents, Financial Development, and Technological Innovations on Environmental Quality: Empirical Evidence from BRI Economies," IJERPH, MDPI, vol. 19(1), pages 1-17, December.
    11. Riza Radmehr & Samira Shayanmehr & Ernest Baba Ali & Elvis Kwame Ofori & Elżbieta Jasińska & Michał Jasiński, 2022. "Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    12. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    13. Yugang He, 2022. "Renewable and Non-Renewable Energy Consumption and Trade Policy: Do They Matter for Environmental Sustainability?," Energies, MDPI, vol. 15(10), pages 1-17, May.
    14. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    15. Usman, Muhammad & Jahanger, Atif & Makhdum, Muhammad Sohail Amjad & Balsalobre-Lorente, Daniel & Bashir, Adnan, 2022. "How do financial development, energy consumption, natural resources, and globalization affect Arctic countries' economic growth and environmental quality? An advanced panel data simulation," Energy, Elsevier, vol. 241(C).
    16. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Ojong, Nathanael, 2022. "Foreign Direct Investment and Inclusive Green Growth in Africa: Energy Efficiency Contingencies and Thresholds," MPRA Paper 115379, University Library of Munich, Germany, revised 09 Nov 2022.
    17. Soumen Rej & Barnali Nag & Md. Emran Hossain, 2022. "Can Renewable Energy and Export Help in Reducing Ecological Footprint of India? Empirical Evidence from Augmented ARDL Co-Integration and Dynamic ARDL Simulations," Sustainability, MDPI, vol. 14(23), pages 1-21, November.
    18. Wang, Zihan & Chen, Xi & Ullah, Sami & Abbas, Shujaat, 2023. "Resource curse or blessing? Evaluating the role of natural resource, social globalization, and environmental sustainability in China," Resources Policy, Elsevier, vol. 85(PA).
    19. Liu, Liyun & Zhao, Zhenzhi & Su, Bin & Ng, Tsan Sheng & Zhang, Mingming & Qi, Lin, 2021. "Structural breakpoints in the relationship between outward foreign direct investment and green innovation: An empirical study in China," Energy Economics, Elsevier, vol. 103(C).
    20. Xie, Bofeng & Rehman, Mubeen Abdur & Zhang, Junyan & Yang, Runze, 2022. "Does the financialization of natural resources lead toward sustainability? An application of advance panel Granger non-causality," Resources Policy, Elsevier, vol. 79(C).

    More about this item

    Keywords

    CO2 emissions; Natural resources; Foreign Direct Investment;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:113736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.