Mineral resources and investment drive clean energy progress: Evidence from economic and governance effectiveness tiers

Jean Pierre Namahoro, Qiaosheng Wu, Beatrice Ihimbabzwe and Cheng Yang

Energy, 2025, vol. 327, issue C

Abstract: This study explores how governance effectiveness and economic inequalities influence the role of mineral resources and investments in advancing clean energy. It examines the long-term effects of mineral resources (imports, rents, and depletion) and investments (energy investment, industrial employment, and GDP share) on clean energy progress imbedded in installed solar capacity (ISC), installed wind capacity (IWC), and electricity generated from renewables (EGR). The study analyzes datasets from 1992 to 2021 across 51 countries, categorized by governance effectiveness and economic tiers, using a cross-sectional augmented distributed lags model. Key findings highlight that mineral imports and rents positively affect EGR and IWC from lower middle to high-income countries. These positive impacts occur across governance tiers ranging from weak to strong. Mineral depletion significantly affects EGR, ISC, and IWC across all governance and economic levels, though ISC and IWC effects vary. Energy investments boost EGR, while industrial employment and GDP yield mixed outcomes on ISC, IWC, and EGR. The findings highlight that as governance effectiveness and economic tiers improved, amplify the positive influence of mineral resources and energy investments on EGR. The study suggests targeted policies to optimize the role of mineral resources and investments in promoting clean energy development.

Keywords: Critical minerals; Mineral resource rents; Clean energy development; Renewable energy; Economic growth; Energy investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:327:y:2025:i:c:s036054422502122x

DOI: 10.1016/j.energy.2025.136480

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