Re-investigation of the resource curse hypothesis: The role of political institutions and energy prices in BRIC countries

Hussain, Muzzammil; Ye, Zhiwei; Usman, Muhammad; Mir, Ghulam Mustafa; Usman, Ahmad; Rizvi, Syed Kumail Abbas

doi:10.1016/j.resourpol.2020.101833

Cited by 47 publications

(10 citation statements)

References 44 publications

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“…To address these limitations of the aforementioned methods, the CS‐ARDL estimator is applied. The CS‐ARDL method has some distinct advantages over these methods: (a) It controls for cross‐sectional dependency, slope heterogeneity, and the structural break issues in the data; (b) it estimates both the short‐ and long‐run elasticities; and (c) it accounts for endogeneity issues in the data (Hussain et al, 2020). The CS‐ARDL model can be specified as

e_{it} = \partial_{i} + \sum_{p = 1}^{a} δ_{i, p} e_{i, t - p} + \sum_{p = 0}^{a} γ_{i, p} X_{i, t - p} + \sum_{p = 0}^{a} ρ_{i} Z_{normalt - q} + ε_{it}

where e it is the outcome variable (per capita CO 2 emissions in the context of this paper) and X it is the set of the independent variables (intra‐regional trade share, renewable energy consumption share, real per capita GDP, gross fixed capital formation, and urbanization rate in the context of this paper) and Z it is the averages of the outcome and the independent variables ( e it and X it ).…”

Section: Methodsmentioning

confidence: 99%

The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors

et al. 2021

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Improving environmental quality across South Asia has become one of the utmost important policy agendas of the concerned governments. The susceptibility of the majority of the South Asian countries to multifaceted climate change adversities has motivated the need to identify the factors that can function to ensure environmental sustainability across South Asia. Although several studies have highlighted the importance of globalization and cleaner energy use in tackling the environmental degradaton issues of the South Asian countries, very little is known regarding the impacts of regional trade and renewable energy transition in this regard. Hence, this paper aims to scrutinize the effects of enhancing intra-regional trade integration and undergoing renewable energy transition on per capita carbon dioxide emissions in the context of six South Asian nations between 1990 and 2016. The results from the recently developed cross-sectionally augmented autoregressive distributed lag regression approach, accounting for cross-sectional dependency and slope heterogeneity issues, reveal that facilitating trade among the South Asian neighbors reduces carbon emissions in both the short and long run. Moreover, enhancing the share of renewable energy in the aggregate energy consumption figures is also found to reduce carbon dioxide emissions in both the short and long run. Furthermore, both regional trade integration and renewable energy transition are found to jointly reduce carbon dioxide emissions in South Asia. The results also authenticate the existence of the environmental Kuznets curve hypothesis, while financial development and urbanization are found to boost carbon dioxide emissions only in the long run.

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e_{it} = \partial_{i} + \sum_{p = 1}^{a} δ_{i, p} e_{i, t - p} + \sum_{p = 0}^{a} γ_{i, p} X_{i, t - p} + \sum_{p = 0}^{a} ρ_{i} Z_{normalt - q} + ε_{it}

Section: Methodsmentioning

confidence: 99%

The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors

et al. 2021

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“…Investing in renewable energy has the potential to pay off for investors. So, the E7 economies should improve their renewable energy investment percentage (Amin and Dogan 2021 ; Hussain et al 2020a , b , c ; Luan et al 2022 ). This study also looks at the effect of natural resource rents, economic policy uncertainty, and urbanization on environmental degradation.…”

Section: Resultsmentioning

confidence: 99%

“…A large number of studies used this proxy. However, a large body of literature supports the evidence of ecological footprints as a better way to monitor environmental degradation (Aşıcı and Acar 2016 ; Hussain et al 2020a , b , c ; Hussain and Dogan 2021 ; Rees 1996 ; Solarin et al 2019 ; Wang and Dong 2019 ). Therefore, the present study is an extension of the existing literature on the “Environment Kuznets Curve (EKC).” where EFP is “ecological footprint per capita consumption,” whereas (Y) is “gross domestic product (GDP) and is estimated as the current US$.” ES is “ energy structure which is a part of total energy in the form of renewable energy sources,” (NRR) “is calculated as the GDP percentage of natural resource rents,” EPU “is economic policy uncertainty and it is taken from the EPUI generated by Economic Policy Uncertainty Index ( 2021 ),” and “urbanization (URB) estimates entire urban populations.” Data is taken from the WDI website and the “global footprints network.” The econometric from Eq.…”

Section: Methodsmentioning

confidence: 99%

“…“Natural resources rents include rents from minerals, coal, natural gas, oil, and forest. Natural resources rent includes all the sum of hard and soft payments from minerals, coal, natural gas, oil, and forest rents that are calculated as the difference between the cost of producing the resource and the price of the resource” (Hussain et al 2020a , b , c ). Climate change has driven more attention to natural resource rents as new schools of economics like environmental economics, ecological economics, and energy economics are taking place to investigate natural resources from different dimensions (Miao et al 2022 ; Zafar et al 2019b ).…”

Section: Literature Reviewmentioning

confidence: 99%

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Linkage of natural resources, economic policies, urbanization, and the environmental Kuznets curve

Hussain

Abbas

Manzoor

et al. 2022

Environ Sci Pollut Res

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“…Since energy, like any other commodity, is not free of cost, movements in energy prices tend to both directly impact the energy consumption levels [10,11]; thus, indirectly affecting the economic growth performances as well [12,13]. Consequently, several studies have also explored the oil price volatility impacts on economic growth [14,15].…”

Section: Introductionmentioning

confidence: 99%

The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka

et al. 2020

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Drifting away from the neoclassical growth conjecture of economic growth being solely dependent on capital and labor inputs, this paper aimed to evaluate the dynamic impacts of energy consumption, energy prices and imported energy-dependency on both gross and sectoral value-added figures of Sri Lanka. The analysis has particularly used the robust econometric methods that can account for structural break issues in the data. The results, in a nutshell, indicated that energy consumption homogeneously contributes to gross, agricultural, industrial and services value-additions in Sri Lanka. However, positive oil price shocks and greater shares of imported energy in the total energy consumption figures are found to dampen the growth figures, especially in the context of the gross, industrial and services value additions. Besides, the joint growth-inhibiting impacts of oil price movements and energy import-dependency are also ascertained. On the other hand, the causality estimates reveal bidirectional causal associations between energy consumption-gross value-added and energy consumption-industrial value-added. In contrast, no causal impact of energy consumption on the agricultural and services value-added is evidenced. Hence, these findings impose key policy implications for constructing crucial energy policy reforms to make sure that the economic growth performances of Sri Lanka are sustained in the future.

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Re-investigation of the resource curse hypothesis: The role of political institutions and energy prices in BRIC countries

Cited by 47 publications

References 44 publications

The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors

The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors

Linkage of natural resources, economic policies, urbanization, and the environmental Kuznets curve

The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka

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