Ecological footprints jeopardy for mineral resource extraction: Efficient use of energy, financial development and insurance services to conserve natural resources

The commodity and resource markets played an important role in attaining the country's economic development via energy efficiency, economic insurance prices and sound financial development. However, the enormous pressure of human demand on natural capital exhausts many important rare earth's resources that demolished the global resource conservation agenda. This study examines the stated factors in the top 10 mineral abundant economies by using their latest available data series from 1990 to 2019. The results of the study show that ecological footprints on mineral resources confirmed the hump-shaped relationship between them. The enormous human demand for natural capital is viewed further in the environmental accounting system. Ecological footprints cause a greater extraction of mineral resources that jeopardize future stocks of rare earth's resources. The panel estimates show that insurance and financial services, massive population growth, and continued economic growth decreases mineral resource rents. In contrast, energy efficiency and trade policies increase mineral resource rents across countries. In general, the results support the economic policies that help reduce human demand for natural capital by efficient insurance services, sustainable economic growth, energy efficiency, and trade fair policies. These factors required more sustainable efforts to mitigate adverse environmental externalities by adopting the latest technology in extractive industries to prevent unsolicited mineral losses.

Automated summary

The study examines the role of commodity and resource markets in economic development, the pressure of human demand on natural capital, and the hump-shaped relationship between ecological footprints and mineral resources in the top 10 mineral abundant economies. The results show that efficient insurance services, sustainable economic growth, energy efficiency, and fair trade policies are important factors in mitigating adverse environmental externalities and reducing mineral resource rents.