Impact of natural resources extraction and energy consumption on the environmental sustainability in ASEAN countries

Abstract

Rapid advancement in economies not only accelerates industrial processes but also amplifies the significance of natural resources. The extensive demand of natural resources to inject the industrial and economic growth, indeed corrupt the environment and atmosphere, hence creating an ecological deficit. The study, thus, with the help of ASEAN panel data from 2006 to 2020, evaluates the role of natural resource extraction and energy consumption in environmental sustainability. The outcomes of quantile regression and OLS fixed method are robust and point out the positive relationship of natural resource rent with carbon emissions, hence, indicating that the factor significantly increases environmental pollution. Contrastingly, renewable energy consumption mitigates the emissions, hence, pointing out the negative relationship. This inculcates the importance of renewable resources which are needed at a broader level to improve environmental quality. Under the evidence, the effective implementation of energy conservation policies and procedures on natural resources not only helps economies to maintain their economic growth but also keeps up their environmental performance through a single platform.