Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador

Influence of the Rent of Natural Resources and Foreign Investment in the Environmental Degradation of Ecuador

Bryan Flores and Rafael Alvarado ()

MPRA Paper from University Library of Munich, Germany

Abstract: In Ecuador, the income obtained from the exploitation of natural resources, especially hydrocarbons and minerals, have been consolidated as the basis of economic development, in turn, the lack of economic and technological resources, as many of the developing countries development, have caused these activities to be concessioner to foreign companies, causing a conflict of interest in which the economic benefit has exceeded environmental sustainability. For this reason, the general objective of this research was to evaluate the impact of rent from natural resources and foreign direct investment on environmental degradation in Ecuador during the period 1975-2019, through an econometric study in order to propose policies. that mitigate environmental degradation and promote environmental sustainability. The data was obtained from the World Development Indicators (2021) and time series econometric techniques were used through the implementation of Vector Autoregressive (VAR), Error Correction (VEC) models and the Granger causality test. According to the results obtained, the presence of a short- and long-term equilibrium relationship between total income from natural resources, foreign direct investment and CO2 emissions was verified. Therefore, policies must be aimed at strengthening environmental legislation and providing an optimal environment for business development based on the implementation of environmentally friendly technologies that guarantee the sustainability of resources.

Keywords: CO2 emissions; Natural resources; Foreign Direct Investment (search for similar items in EconPapers)
JEL-codes: F21 Q34 Q53 (search for similar items in EconPapers)
Date: 2022-03-09
New Economics Papers: this item is included in nep-ene and nep-env
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