The role of natural resources, globalization, and renewable energy in testing the EKC hypothesis in MINT countries: new evidence from Method of Moments Quantile Regression approach

We employ the new Method of Moments Quantile Regression approach to expose the role of natural resources, renewable energy, and globalization in testing Environment Kuznets Curve (EKC) in MINT panel covering the years 1995-2018. The outcome validates the EKC curve between economic progress and carbon emissions from the third quantile to the extreme highest quantile. The result also shows that natural resources increase CO2 emissions at the lowest quantile and then turn insignificant from the middle to the highest quantiles due to the potential utilization of resources in a sustainable manner. The renewable energy mitigates CO2 emissions at the lower half quantiles. Still, for upper quantiles, the results are unexpected and imply that the countries' total energy mix depends heavily on fossil fuels. As far as globalization is concerned, the significant results from medium to upper quantiles reveal that as globalization heightens due to foreign direct investment or trade, energy consumption also expands, leading to the worst environment quality. Thus, the present study's consequences deliver guidelines for policymakers to utilize natural resources sustainably and opt technologies based on clean energy, which may offset environmental degeneration.

Automated summary

The study identifies an Environmental Kuznets Curve between economic progress and carbon emissions. Natural resources increase CO2 emissions at the lowest quantile but become insignificant at the middle to high quantiles. Renewable energy helps to mitigate CO2 emissions, while globalization leads to expanded energy consumption and worsened environmental quality.