Does environmental policy stringency alter the natural resources-emissions nexus? Evidence from G-7 countries

Abstract

Natural resource management is indispensable keeping in view their positive economic impacts as well as their detrimental environmental consequences. To achieve certain SDGs, it is inevitable to manage natural resources through effective policies that help to inhibit adverse environmental impacts. Based on this approach, the current empirical analysis aims to probe whether environmental policy stringency intensifies, meagres, and/or halts the abysmal environmental impact of natural resources in G-7 countries (United Kingdom, United States, Canada, Italy, France, Japan, and Germany) for the period from 1990 to 2020. To that end, we rely on the second-generation panel data approaches and panel quantile regression. The outcomes reveal that natural resources increase carbon dioxide emission whereas the synergy of natural resources and environmental policy stringency plunges emissions across the quantiles. These findings suggest adoption of a strict environmental policy for attaining the targets of SGD-08 (economic growth), SDG-09 (innovations), SDG-11 (sustainable cities), SDG-12 (responsible consumption of natural resources), and SDG-13 (climate action).

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