Mineral resource extraction and environmental sustainability for green recovery

Man Lu and Yue Zhao

Resources Policy, 2024, vol. 90, issue C

Abstract: This research paper investigates the complex network of relationships influencing green economic growth in 22 developing nations. Utilizing data spanning from 2000 to 2022 and employing the SYSTEM-GMM approach, our analysis reveals significant insights into the dynamic interactions among mineral extraction, inward Foreign Direct Investment (FDI), the Consumer Price Index (CPI), economic uncertainty, good governance, and green growth. The findings strongly indicate the adverse impact of mineral extraction on green growth, with a mere 1% increase leading to a notable 0.22% reduction in the green growth index. Additionally, the study underscores the pressing need for a reassessment of FDI policies, as inward FDI often contributes to environmental pollution in the absence of regulatory incentives. It emphasizes the hindering role of the Consumer Price Index (CPI) in green growth and, conversely, highlights the positive influence of good governance. The research underscores the destabilizing effect of economic uncertainty on sustainability and emphasizes the significance of economic stability. To promote environmentally friendly economic recovery, we propose policies aimed at reshaping the mineral extraction industry, fostering economic resilience, controlling inflation rates, improving green governance, and nurturing green innovation.

Keywords: Mineral extraction industry; Sustainability; Green growth; Developing economies (search for similar items in EconPapers)
JEL-codes: L72 O10 O44 Q32 Q58 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420723013272

DOI: 10.1016/j.resourpol.2023.104616

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