An exploration of linkage between climate-related financial policies and natural rents: Evidence from the global database

To Trung Thanh, Nguyen Van Song, Nguyen Thi Thanh Huyen, Le Thanh Ha and Tran Thi Lan Huong

Resources Policy, 2024, vol. 88, issue C

Abstract: In this article, we attempt to link climate-related financial policies to natural rents around the world. The study employs five distinct measures, namely natural rents, coal rents, mineral rents, gas rents, and forest rents, to reflect the diverse aspects of natural resource rents. Utilizing various econometric techniques, such as the panel-corrected standard errors (PCSE) model, feasible generalized least square estimates (FGLS) model, and the two-step General Method of Moment (the two-step GMM), a substantial reduction in the significance of natural rents has been associated with climate-related financial policies. The findings illustrate varied outcomes and influences of these policies on different categories of natural rents. Additionally, by using a dynamic fixed effect in an autoregressive distributed lag (ARDL) approach, the study suggests that the effects of climate-related financial policies are more prominent in the long run. The results are found to be robust and reliable, considering factors such as heterogeneity, fixed effects, and endogeneity. Notably, the effectiveness of climate policies is observed to be more pronounced in countries with well-developed institutions. This research examines the complexities and consequences of climate-related financial policies on natural rents, providing valuable insights for policymakers and researchers alike.

Keywords: Natural rents; Global database; Climate-related financial policies; Institutional system (search for similar items in EconPapers)
JEL-codes: C3 G21 G23 O15 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723011613

DOI: 10.1016/j.resourpol.2023.104450

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