Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies
This study models the Kaya identity equation for carbon dioxide (CO2) emissions in a panel of 20 oil-rich countries from 1994 to 2019. The estimators used are robust to cross-sectional dependence and allow for heterogeneous slope coefficients. The results indicate that natural resource extraction hi...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-02-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024016979 |
| _version_ | 1797304386070773760 |
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| author | Chinazaekpere Nwani Ekpeno L. Effiong Kingsley Ikechukwu Okere Paul Terhemba Iorember |
| author_facet | Chinazaekpere Nwani Ekpeno L. Effiong Kingsley Ikechukwu Okere Paul Terhemba Iorember |
| author_sort | Chinazaekpere Nwani |
| collection | DOAJ |
| description | This study models the Kaya identity equation for carbon dioxide (CO2) emissions in a panel of 20 oil-rich countries from 1994 to 2019. The estimators used are robust to cross-sectional dependence and allow for heterogeneous slope coefficients. The results indicate that natural resource extraction hinders environmental sustainability in oil-rich countries by altering the structural composition of their consumption mix towards energy- and carbon-intensive technologies. However, this relationship is only significant after reaching a turning point level of resource extraction. This suggests that the carbon curse is only triggered at higher levels of resource dependence, supporting a U-shaped relationship between natural resource extraction and CO2 emissions. The threshold for the natural rents to GDP ratio, beyond which natural resource extraction triggers the carbon curse, is found to be 12.18 %. The vulnerability assessment reveals that 17 countries in the panel, including Algeria, Kazakhstan, the United Arab Emirates, Iran, Iraq, Kuwait, Qatar, Oman, Saudi Arabia, the Congo Republic, and Libya, are already within the carbon curse zone. From a policy perspective, promoting sustainable development in oil-rich economies requires a shift towards renewable energy sources, reducing reliance on fossil fuels, and widespread adoption of energy efficiency and conservation mechanisms. |
| first_indexed | 2024-03-08T00:09:47Z |
| format | Article |
| id | doaj.art-079ef862ea7744a7b460d90c15129aca |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T00:09:47Z |
| publishDate | 2024-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-079ef862ea7744a7b460d90c15129aca2024-02-17T06:41:35ZengElsevierHeliyon2405-84402024-02-01103e25666Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economiesChinazaekpere Nwani0Ekpeno L. Effiong1Kingsley Ikechukwu Okere2Paul Terhemba Iorember3Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, Ebonyi State, Nigeria; Corresponding author.Department of Economics, University of Uyo, NigeriaSchool of Economics and Finance, University of the Witwatersrand, Johannesburg, South AfricaDepartment of Economics, Nile University of Nigeria, Abuja, NigeriaThis study models the Kaya identity equation for carbon dioxide (CO2) emissions in a panel of 20 oil-rich countries from 1994 to 2019. The estimators used are robust to cross-sectional dependence and allow for heterogeneous slope coefficients. The results indicate that natural resource extraction hinders environmental sustainability in oil-rich countries by altering the structural composition of their consumption mix towards energy- and carbon-intensive technologies. However, this relationship is only significant after reaching a turning point level of resource extraction. This suggests that the carbon curse is only triggered at higher levels of resource dependence, supporting a U-shaped relationship between natural resource extraction and CO2 emissions. The threshold for the natural rents to GDP ratio, beyond which natural resource extraction triggers the carbon curse, is found to be 12.18 %. The vulnerability assessment reveals that 17 countries in the panel, including Algeria, Kazakhstan, the United Arab Emirates, Iran, Iraq, Kuwait, Qatar, Oman, Saudi Arabia, the Congo Republic, and Libya, are already within the carbon curse zone. From a policy perspective, promoting sustainable development in oil-rich economies requires a shift towards renewable energy sources, reducing reliance on fossil fuels, and widespread adoption of energy efficiency and conservation mechanisms.http://www.sciencedirect.com/science/article/pii/S2405844024016979Energy efficiencyCarbon intensityKaya identityNatural resourcesOil-rich economiesCarbon curse |
| spellingShingle | Chinazaekpere Nwani Ekpeno L. Effiong Kingsley Ikechukwu Okere Paul Terhemba Iorember Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies Heliyon Energy efficiency Carbon intensity Kaya identity Natural resources Oil-rich economies Carbon curse |
| title | Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies |
| title_full | Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies |
| title_fullStr | Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies |
| title_full_unstemmed | Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies |
| title_short | Beyond the barrels: The impact of resource wealth on the energy-economy-climate targets in oil-rich economies |
| title_sort | beyond the barrels the impact of resource wealth on the energy economy climate targets in oil rich economies |
| topic | Energy efficiency Carbon intensity Kaya identity Natural resources Oil-rich economies Carbon curse |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024016979 |
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