Depletion of natural resources and environmental quality: Prospects of energy use, energy imports, and economic growth hindrances

Abstract

Depletion of natural resources and their impact on environmental quality is a pressing concern that requires urgent attention. As the world's population continues to grow, the demand for energy increases, leading to the potential exhaustion of finite resources. This document aims to explore the prospects of energy use, energy imports, and the hindrances to economic growth related to these issues. This paper examines the depletion of natural resources and environmental quality in China from 1971 to 2019, using energy use, energy imports, and economic growth hindrances as moderator variables. The long-run estimates indicate that a 1% increase in natural resource depletion decreases environmental degradation in China by 0.016554%. Moreover, a 1% increase in energy use increases China's CO₂ emissions (environmental degradation) by 1.64283%. The result shows energy use and economic growth are positively related to CO₂ emissions. Energy imports and natural resource depletion are negatively associated with CO₂ emissions. Moreover, energy use and economic growth, energy imports, and natural resource depletion degrade the environmental quality in China. The Chinese government should take steps to ensure that the depletion of natural resources does not hurt the economy. In particular, the government should seek to create incentives for businesses to invest in sustainable practices and resources. This would have the dual effect of reducing the depletion of natural resources and increasing economic growth. Moreover, the Chinese government must strengthen its legal framework to ensure natural resources are managed responsibly. This includes establishing clear regulations for resource extraction and introducing penalties for companies who violate these regulations.