The Role of Mineral Rent, Energy Poverty, and Green Economic Growth in Environmental Degradation: New Insights for Sustainable Futures in G5 Countries

Abstract

Policymakers and academics continue to focus on environmental degradation as it remains a pressing global issue. This study aims to explore the roles of mineral rents, energy poverty, green economic growth, and human capital in influencing environmental degradation within the G5 countries from 2000 to 2022. By providing new insights, the study seeks to contribute to the ongoing discourse on sustainable futures. A series of econometric estimates namely the augmented mean group, feasible generalized least squares, and fixed and random effects models were employed to achieve the research objectives. The Hausman test was used to validate the feasible generalized least squares results, which formed the basis of the study’s conclusions. The findings reveal that mineral rents significantly contribute to environmental degradation, while energy poverty has an inverse relationship with it. Robustness checks affirm the reliability of the study's models and highlight additional insights: trade openness does not significantly impact environmental degradation, whereas human capital has a pronounced detrimental effect on the environment. The study emphasizes the importance of implementing targeted policy measures to effectively mitigate environmental degradation and support sustainable development.