The nexus of carbon emissions, oil price volatility, and human capital efficiency

Muhammad Umar, Nawazish Mirza, Jamila Abaidi Hasnaoui and Małgorzata Porada Rochoń

Resources Policy, 2022, vol. 78, issue C

Abstract: The corporate sector's active engagement is vital for achieving a net-zero future. It entails a sizeable investment in human capital to foster more conscious efforts to limit carbon emissions. Therefore it is critical to evaluate the nexus between carbon emissions and human capital efficiency. This paper analyzes the link between human capital efficiency and carbon emissions using a comprehensive sample of 5740 firms across eight countries spanning over ten years. Our findings show a negative relationship between investment in human capital and carbon emissions. We emphasize that optimal human capital efficiency can help limit emissions by fostering the transitions to renewable energy sources and the development of cognitive appreciation. The results remained robust for periods marked by booming and receding oil prices. These findings have important implications for optimizing firm performance while preserving sustainable development goals.

Keywords: Carbon emissions; Oil price cycles; Human capital efficiency (search for similar items in EconPapers)
JEL-codes: G30 G32 J24 Q35 Q54 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142072200321X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:78:y:2022:i:c:s030142072200321x

DOI: 10.1016/j.resourpol.2022.102876

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().