The dynamic relationship between resources, finances, and sustainable development: An in-depth analysis

Changchun Pan, Jingxia Yu, Yuzhe Huang and Sumeyya Altuntas

Resources Policy, 2023, vol. 86, issue PB

Abstract: The expansion of the economy and the use of natural resources have been identified as the main causes of environmental degradation. As a result, there is a need for sustainable and environmentally-friendly growth. However, the concept of "pollution havens" is becoming increasingly relevant, with businesses relocating to developing countries in search of more lax environmental regulations. This could lead to higher-than-desirable rates of pollution and environmental damage. To address this issue, this study assesses the role of natural resources (NTR), Foreign Direct Investment (FDI), Financial Development (FDT), and Green Finance (GFN) using QARDL analysis. The study found that NTR, FDI, and FDT increased CO2 emissions, while GFN reduced them in the short and long run. The findings provide valuable insights for policymakers, who can use the information to develop policies that promote economic growth while reducing environmental pollution. Additionally, the study highlights the need to prevent businesses from exploiting lax environmental regulations in developing countries. Overall, the findings of this study underscore the importance of balancing economic development and environmental sustainability and call for the prioritization of green initiatives in policy development.

Keywords: Natural resources; Green finance; Foreign direct investment; Financial development; China (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723007857
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:86:y:2023:i:pb:s0301420723007857

DOI: 10.1016/j.resourpol.2023.104074

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 ().