Natural resource rent, green finance, and CO2 emissions from the industrial sector

Henian Zhu, Mengya Chen and Songnian Zhao

Resources Policy, 2024, vol. 98, issue C

Abstract: This study investigates the effect of natural resource rents and green finance on industrial sustainability in 20 OECD countries from 2010 to 2020, using the CCEMG-ARDL approach. Findings reveal that a 1% increase in green finance reduces CO2 emissions by 0.43% in the short term and 0.27% in the long term, highlighting its role in supporting environmentally friendly investments. In contrast, a 1% rise in fossil fuel rents increases CO2 emissions by 0.29% short-term and 0.05% long-term, showing the pollutive impact of fossil fuel profits. Additionally, a 1% increase in electricity usage raises CO2 emissions by 0.41% short-term and 0.16% long-term, stressing the need for cleaner energy. Industry-specific patents show limited alignment with sustainability goals. Policy measures should target resource rent management, boost green finance, and encourage sustainable practices to promote industrial greening.

Keywords: Natural resource rent; Green finance; Sustainable economic development; Carbon dioxide by industry sector; OECD; Fossil fuels consumption rent (search for similar items in EconPapers)
JEL-codes: F55 Q32 Q35 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007372

DOI: 10.1016/j.resourpol.2024.105370

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