Exploitation of Natural Resources and Carbon Transfer in Trade

Blaise Likamata (), Simplice Asongu and Dieudonné Mignamissi ()
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Blaise Likamata: Yaoundé, Cameroon
Dieudonné Mignamissi: Yaoundé, Cameroon

No 26/052, Working Papers from European Xtramile Centre of African Studies (EXCAS)

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.

Keywords: Natural Resources; Carbon Transfer; Trade (search for similar items in EconPapers)
JEL-codes: F10 O31 Q20 Q54 Q56 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2026-01
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http://publications.excas.org/RePEc/exs/exs-wpaper ... ransfer-in-Trade.pdf Revised version, 2026 (application/pdf)

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Working Paper: Exploitation of Natural Resources and Carbon Transfer in Trade (2026)
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