The impact of natural resource depletion on energy use and CO2 emission in Belt & Road Initiative countries: A cross-country analysis

We employ STIRPAT (stochastic impact of regression on population, affluence, and technology) model to investigate the impact of natural resource depletion on energy use and carbon dioxide emissions for a panel of 56 “Belt & Road Initiative” (BRI) countries over 1990–2014. We utilize the Augmented Mean Group (AMG) panel estimator and Common Correlated Effects Mean Group (CCEMG) estimator for estimating our model. The results indicate that increasing natural resource depletion increases CO2 emissions and energy use, which shows that a 1% increase in natural resource depletion for our sample of BRI countries will increase CO2 emissions and energy use by 0.0286% and 0.0117%, respectively. To check the causal relationship among our variables, we employ the VECM Granger causality test. The causality results underscore feedback hypothetical links among CO2 emissions, energy use, economic growth, natural resource depletion, urbanization, and trade openness in the long run. Our results show a significant cross-sectional dependence and heterogeneity. [Display omitted] •There exists significant cross-sectional dependence and heterogeneity.•The robust panel data estimator Common Correlated Effect Mean Group (CCEMG) is used.•Natural resource depletion positively and significantly influences CO2 emissions and energy use.•Different causality links lie among the underlying variables.