Does natural resource rent degrade environmental quality?
a case study in Vietnam
DOI:
https://doi.org/10.23925/2179-3565.2026v17i1p32-40Keywords:
Greenhouse gas emissions, industrial asymmetry, NARDL modelAbstract
This study analyzes the relationship between economic growth, natural resource rent, industrial activity, and greenhouse gas emissions during the period 1986–2021. Annual time-series data were collected from the World Development Indicators, where CO₂-equivalent emissions were used to assess environmental quality, GDP per capita was used to measure economic growth, natural resource rent (% of GDP) was used to measure resource dependence, and the share of industrial value added in GDP was used to measure the level of industrialization. The study applies a nonlinear autoregressive distributed lag (NARDL) model to simultaneously examine short-term and long-term effects, as well as asymmetry among the variables. The results show that long-run cointegration exists in the model. Economic growth has a positive and statistically significant impact on emissions in both the short and long run, while natural resource rent has a negative effect in the long run. Furthermore, negative shocks to industrial activity have a more pronounced impact on emissions than positive shocks. These results imply the need to improve the quality of economic growth and promote industrial restructuring toward sustainability.
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