首页|Natural resources commodity prices volatility, economic performance and environment: Evaluating the role of oil rents
Natural resources commodity prices volatility, economic performance and environment: Evaluating the role of oil rents
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NSTL
Elsevier
Since there is a growing debate on cutting down global emissions level and natural resources commodity price volatility, current study addresses its nexus. This study explores the impact of natural resources commodity price volatility and economic performance on environmental quality for the group of seven (G7) economies over the period from 1990 to 2020. Using several second-generation methodologies such as slope heterogeneity, cross-section dependence, and unit root test, this study also used a cointegration test that validates the long-run relationship between the study variables. Besides, this study used a novel method of moments panel quantile regression for an empirical investigation of the problem. The empirical results demonstrate that economic growth and natural resources commodity prices are detrimental to environmental quality by enhancing carbon emission levels in all three quantiles, i.e., Q(0.25), Q(0.50), and Q(0.75). However, the magnitude of both these factors are found decreasing from lower to - middle and to upper quantiles. Besides, oil rents are found to exhibit a negative influence on carbon emission. Moreover, renewable energy research and development are also found to associate carbon emissions negatively. Moreover, the Dumitrescu-Hurlin Granger panel causality test validates the feedback effect for all the explanatory variables and carbon emission in the region. The empirical findings suggest the enhancement of investment in renewable energy research and development, restriction of the subsidizing fossil fuel energy sources, and volatility control by effective measures provided in the study.
Natural resourcesCommodity price volatilityEconomic performanceOil rentsGroup of sevenRENEWABLE ENERGYCO2 EMISSIONSPANELGROWTH
NSTL
Elsevier
