Testing the N-shaped environmental Kuznets Curve in Algeria: An imperious role of natural resources and economic globalization

Natural resources have played a role of backbone in the economy of Algeria. It has become the sixth biggest nation to export its natural resources, i.e., natural gas. Hence, revealing the substantial impact of natural resources on environmental degradation in Algeria becomes imperative. This investigation analyzed the influence of natural resources rents, economic growth, and economic globalization on the ecological footprints in Algeria. This investigation employed the ARDL model and found that income generated from natural resources imperiously improved environmental excellence in Algeria. However, economic globalization nominated positive affiliation with environmental degradation. Hence, these findings revealed the importance of putting tariffs on the import of bad goods and services. Moreover, the study evaluated the N-shaped environmental Kuznets curve (EKC) theory. The verdicts confirmed the subsistence of an N-shaped relationship amid economic growth and ecological footprints in Algeria. In addition, the causality test revealed that economic growth and its square have a bidirectional causality effect with environmental degradation. Indeed, natural resources exposed unidirectional causality moving from natural resources to environmental degradation. However, causality findings for economic globalization were insignificant. The study revealed the important policies to achieve sustainable development without effacing environmental sustainability in Algeria.

Automated summary

Natural resources play a crucial role in the economy of Algeria, particularly in terms of natural gas. The study reveals that income generated from natural resources significantly improves environmental quality in Algeria. However, economic globalization is positively associated with environmental degradation. Imposing tariffs on the import of environmentally harmful goods and services is of great importance. The study also finds an N-shaped relationship between economic growth and ecological footprints, with a bidirectional causality effect observed between economic growth and environmental degradation.