Unveiling the relationship between environmental quality, non-renewable energy usage and natural resource rent: Fresh insights from ten asian economies

Abstract

Asia is counted as one of the regions that has been dealing high emissions and energy consumption issue especially since last decade. Also, Natural resource rents are one of the influencing constraints which damages the environmental quality. Since the recent global climate summit is conducted to gather world leaders together to accelerate Paris agreement goals. Thereby, considering COP26 commitments, the study intended to explore the role of COP26 commitments along with non-renewable energy consumption in the extraction of natural resources. The necessity to study it in the context of 10 Asian economies is due to the high emissions and energy consumption and one should know that transitioning the economy towards renewable consumption is an essential target to meet COP26 net-zero emission goal. Thus, the study covered the period from 2006 to 2020 to explore the relationship between variables in Asian economies. Findings echoed that carbon emissions and methane emissions are positively associated with natural resource rents, hence establishing the fact that COP26 environmental targets are negatively related to natural resource rents. Consistent with prior literature, findings also exposed the positive association of fossil fuel energy consumption with natural resource rent, hence highlighting the need of serious policy implications in order to save the environmental and natural resources for future generation.