How education expenditures, natural resources, and GDP interact with load capacity factor in the presence of trade diversity index under COVID-19 perception: Evidence from G-7 nations

Yinshi Jin, Bingjun Zhou, Panpan Zhang and Tiancai Li

Resources Policy, 2024, vol. 88, issue C

Abstract: The group of seven (G-7) economies has confronted numerous financial and environmental challenges since the beginning of the 21st century, including the emergence of the COVID-19 pandemic, which has hindered growth in both developed and developing nations. However, it is crucial to note that these disparate consequences are not isolated events but interconnected with the fluctuations in various economic and environmental factors. Therefore, this study examines the association between education expenditure (EDU), natural resources (NR), economic growth (GDP), trade diversification index (TRD), and load capacity factor (LCF) in the G7 nations from 1995 to 2022 through empirical analysis. Various econometric methods such as cross-sectional dependence (CD), Cross-sectionally augmented Im, Pesaran and Shin (CIPS), cross-sectional augmented Dickey-Fuller (CADF), Westerlund cointegration, and the method of moments quantile regression (MMQR), are employed. The results suggest a positive relationship between education expenditure, NR, TRD, and environmental quality in G7 nations. In general, the research suggests that G-7 nations should adopt policies centered on resilience, focusing on fostering economic conditions that can help alleviate the negative impacts of COVID-19 on the environment and socio-economic development. Furthermore, the study highlights the importance of trafe digitalization in addressing the challenges faced by G-7 nations. By adopting digital technologies, G-7 countries could better manage their natural resources, streamline education expenditure, and improve trade diversification, thereby positively influencing economic growth and environmental quality. At last, it is asserted that the presence of local individuals who have a higher level of environmental awareness, acquired through education and training, can help to improve environmental quality.

Keywords: Education expenditures; Natural resources; Trade diversification index; Load capacity factor; G7 economies (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723012436

DOI: 10.1016/j.resourpol.2023.104532

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