Geoscience Frontiers (Mar 2024)
Environmental impact of energy imports: Natural resources income and natural gas production profitability in the Asia-Pacific Economic Cooperation Countries
Abstract
Environmental degradation is a pressing global concern, with the energy sector being one of the major contributors to this issue. The environmental impact of energy imports, particularly regarding natural resources income and natural gas production profitability, cannot be ignored. Countries must assess the environmental consequences of their energy choices and take steps to minimize their impact. By transitioning to cleaner and more sustainable energy sources, countries can ensure a better future for the environment and their economies. This study examines the impact of energy imports and natural resources income on environmental degradation in the Asia-Pacific Economic Cooperation (APEC) countries from 1990 to 2020, using revenue minus the production cost of natural gas and electricity production from renewable sources as moderating variables. Long-run estimates are derived using the Generalized Method of Moments and robust least squares. Our findings elucidate that importing energy from countries specializing in renewable energy can help reduce reliance on fossil fuels. This diversification of energy sources decreases the overall carbon footprint and contributes to a cleaner environment. Natural gas production often involves infrastructure construction, such as drilling rigs and pipelines, which can disrupt natural habitats and wildlife corridors. This destruction of ecosystems can have long-term consequences on biodiversity and ecological balance. The environmental impact of energy imports, particularly related to natural resource income and natural gas production profitability, requires BRICS countries to take proactive measures. These nations can address the environmental challenges associated with their energy demands by implementing policies prioritizing sustainable resource management, carbon pricing, stringent regulation, and investment in research and development. By doing so, they can balance economic growth and environmental sustainability, ensuring a greener future for the BRICS countries.
