article · Frontiers in Environmental Science
This research evaluates the distinct impacts of natural resource production and consumption on environmental sustainability across selected G20 economies between 1995 and 2019. Measuring sustainability via carbon emissions and ecological footprint, the analysis uses advanced econometric estimators within an extended STIRPAT theoretical framework. The findings demonstrate that both the extraction and consumption of coal and oil damage environmental quality, with production exerting a stronger negative influence than consumption. In contrast, natural gas yields mixed direct and indirect effects across the two environmental indicators. The assessment also confirms that environmental taxes and green policies, notably green energy, green technology, and green finance, actively foster sustainability. Ultimately, addressing these challenges requires removing fossil fuel subsidies alongside targeted public and private investments in clean policies.
Balancing economic activity with planetary boundaries requires understanding the true environmental costs of fossil fuels. By separating resource production from consumption, this work demonstrates how specific energy sources affect carbon emissions and ecological footprints. It reinforces the need for governments and financial institutions to end fossil fuel subsidies and redirect capital toward green technology, cleaner energy, and environmental taxation.
The findings can inform policymakers, climate fund managers, and green finance organisations seeking empirical evidence to justify environmental tax designs and renewable energy investments. Because the research operates at a macroeconomic policy level based on historical national data, it represents early-stage conceptual insight rather than a direct commercial product. The abstract does not indicate an immediate commercial application pathway or technology readiness level.
AI-generated from the published abstract. Always read the original work before citing.
This study presents the maiden empirical evidence disintegrating the impacts of natural resources on environmental sustainability into production and consumption models. For easy trackability of the empirical evidence, environmental sustainability is captured by carbon emissions and ecological footprint in selected G20 economies with ta running from 1995 to 2019. To elaborate the study’s contributions, green policies comprising green energy, green technology, and green finance together with environmental tax, financial development, economic growth, and population are considered as covariates in STIRPAT embedded theoretical framework. The empirical verification anchors on second-generation estimators entailing cross-sectional autoregressive distributed lag (CS-ARDL), common correlated effects mean group autoregressive mean group (AMG), and method of moment quantile regression The fallouts from the analyses reveal that the production and consumption of natural resources based on coal and oil hinder environmental sustainability, although the former has greater effects than the latter. Interestingly, natural gas provides diverging direct and indirect impacts on both pollutants. More so, green policies and environmental taxes support promoting environmental sustainability. Additionally, two channels of causalities, including unidirectional and bidirectional nexuses, are apparent from the estimated model. The study highlights the importance of eliminating fossil fuel subsidies and making substantial investments in green policies as key recommendations for policy action.
This page summarises published work. The authoritative version sits with the publisher.
DOI: 10.3389/fenvs.2024.1524350
Is something wrong with this record? Report it or request removal.
Discussion
Have you built on this work, tried to replicate it, or seen it applied in practice? Share what you know. Verified researchers and MARATTO™ domain experts can open a discussion, and any member can reply. Contributions are reviewed before they appear.
No discussion yet. Open the first thread.
New to MARATTO™? Create a free account.
