Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador

Flores, Bryan and Alvarado, Rafael (2022): Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador.

Abstract

In Ecuador, the income obtained from the exploitation of natural resources, especially hydrocarbons and minerals, have been consolidated as the basis of economic development, in turn, the lack of economic and technological resources, as many of the developing countries development, have caused these activities to be concessioner to foreign companies, causing a conflict of interest in which the economic benefit has exceeded environmental sustainability. For this reason, the general objective of this research was to evaluate the impact of rent from natural resources and foreign direct investment on environmental degradation in Ecuador during the period 1975-2019, through an econometric study in order to propose policies. that mitigate environmental degradation and promote environmental sustainability. The data was obtained from the World Development Indicators (2021) and time series econometric techniques were used through the implementation of Vector Autoregressive (VAR), Error Correction (VEC) models and the Granger causality test. According to the results obtained, the presence of a short- and long-term equilibrium relationship between total income from natural resources, foreign direct investment and CO2 emissions was verified. Therefore, policies must be aimed at strengthening environmental legislation and providing an optimal environment for business development based on the implementation of environmentally friendly technologies that guarantee the sustainability of resources.

• Item Type: MPRA Paper
• English Title: Influence of the Rent of Natural Resources and Foreign Investment in the Environmental Degradation of Ecuador
• Language: Spanish
• Keywords: CO2 emissions, Natural resources, Foreign Direct Investment
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q34 - Natural Resources and Domestic and International Conflicts; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling

References

Adams, S., & Klobodu, E. K. M. (2018). Financial development and environmental degradation: does political regime matter?. Journal of Cleaner Production, 197, 1472-1479.

Agboola, M. O., Bekun, F. V., & Joshua, U. (2021). Pathway to environmental sustainability: Nexus between economic growth, energy consumption, CO2 emission, oil rent and total natural resources rent in Saudi Arabia. Resources Policy, 74, 102380.

Ahmed, Z., Asghar, M. M., Malik, M. N., & Nawaz, K. (2020). Moving towards a sustainable environment: the dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China. Resources Policy, 67, 101677.

Ahmad, M., Jiang, P., Majeed, A., Umar, M., Khan, Z., & Muhammad, S. (2020). The dynamic impact of natural resources, technological innovations and economic growth on ecological footprint: an advanced panel data estimation. Resources Policy, 69, 101817.

Alvarado, R., Tillaguango, B., Dagar, V., Ahmad, M., Işık, C.,

Méndez, P., & Toledo, E. (2021). Ecological footprint, economic complexity and natural resources rents in Latin America: empirical evidence using quantile regressions. Journal of Cleaner Production, 318, 128585.

Appiah, M. O. (2018). Investigating the multivariate Granger causality between energy consumption, economic growth and CO2 emissions in Ghana. Energy Policy, 112, 198-208.

Banco Mundial. (2020). Global Investment Competitiveness Report 2019/2020: Rebuilding Investor Confidence in Times of Uncertainty. The World Bank.

BCE. 2021. Reportada en la Balanza de Pagos - Boletín No 77. Recuperado de: https://www.bce.fin.ec/index.php/component/k2/item/298-inversi%C3%B3n-extranjera-directa. BID, 2021. Nuevas oportunidades de desarrollo. Iadb.org. Disponible en: <https://www.iadb.org/es/cambio-climatico/nuevas-oportunidades-de-desarrollo>.

Bildirici, M., & Gokmenoglu, S. M. (2020). The impact of terrorism and FDI on environmental pollution: evidence from Afghanistan, Iraq, Nigeria, Pakistan, Philippines, Syria, Somalia, Thailand and Yemen. Environmental Impact Assessment Review, 81, 106340.

Brundtland, G. H. (1987). What is sustainable development. Our common future, 8(9).

Burki, U., & Tahir, M. (2022). Determinants of environmental degradation: Evidenced-based insights from ASEAN economies. Journal of Environmental Management, 306, 114506.

Catalán, H. (2014). Curva ambiental de Kuznets: implicaciones para un crecimiento sustentable. Economía Informa, 389, 19-37. CEPAL. (2015). Fiscalidad y cambio climático: El caso de Ecuador. Cepal.org. Disponible en: https://www.cepal.org/sites/default/files/events/files/doloresalmeida.pdf

CEPAL. (2019). La Inversión Extranjera Directa en América Latina y el Caribe 2019. CEPAL.

CEPAL (2020). La emergencia del cambio climático en América Latina y el Caribe:¿ seguimos esperando la catástrofe o pasamos a la acción?. CEPAL.

Coase, R. (1960). The problem of social cost. Journal of law and economics.

Cole, M. A. (2004). Trade, the pollution haven hypothesis and the environmental Kuznets curve: Examining the linkages. Ecological Economics, 48(1), 71-81.

Chakravarty, D., & Mandal, S. K. (2020). Is economic growth a cause or cure for environmental degradation? Empirical evidences from selected developing economies. Environmental and Sustainability Indicators, 7, 100045.

Doytch, N. (2020). The impact of foreign direct investment on the ecological footprints of nations. Environmental and Sustainability Indicators, 8, 100085.

Essandoh, O. K., Islam, M., & Kakinaka, M. (2020). Linking international trade and foreign direct investment to CO2 emissions: any differences between developed and developing countries?. Science of the Total Environment, 712, 136437.

Estenssoro, F., & Devés, E. (2013). Antecedentes históricos del debate ambiental global: Los primeros aportes latinoamericanos al origen del concepto de Medio Ambiente y Desarrollo (1970-1980). Estudos Ibero-Americanos, 39(2), 237-261.

Espín, J. A., Córdova, A. C., & López, G. E. (2016). Inversión extranjera directa: su incidencia en la tasa de empleo del Ecuador. RETOS. Revista de Ciencias de la Administración y Economía, 6(12), 215-228.

Georgescu-Roegen, N. (1975). Dynamic models and economic growth. World Development, 3(11-12), 765-783.

Gujarati, D. & Porter D. (2010). Econometría. México D. F., México: The McGraw-Hill.

Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: journal of the Econometric Society, 424-438.

Grossman, G., & Krueger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. National Bureau of Economic Research, 3914. https://doi.org/10.3386/w3914 Gyamfi, B. A., Adebayo, T. S., Bekun, F. V., Agyekum, E. B., Kumar, N. M., Alhelou, H. H., & Al-Hinai, A. (2021). Beyond environmental Kuznets curve and policy implications to promote sustainable development in Mediterranean. Energy Reports, 7, 6119-6129.

Hanif, I., Raza, S. M. F., Gago-de-Santos, P., & Abbas, Q. (2019). Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: some empirical evidence. Energy, 171, 493-501.

INEC, (2019). Anuario de estadística de transporte 2016. Disponible en: https://www.ecuadorencifras.gob.ec/documentos/web-inec/Estadisticas_Economicas/Estadistica%20de%20Transporte/2016/2016_AnuarioTransportes_Resumen%20Metodol%C3%B3gico.pdf

Jun, W., Mughal, N., Zhao, J., Shabbir, M. S., Niedbała, G., Jain, V., & Anwar, A. (2021). Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission. Energy Policy, 153, 112230.

Jiang, L., Zhou, H. F., Bai, L., & Zhou, P. (2018). Does foreign direct investment drive environmental degradation in China? An empirical study based on air quality index from a spatial perspective. Journal of cleaner production, 176, 864-872.

Khan, I., Hou, F., Le, H. P., & Ali, S. A. (2021). Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries. Resources Policy, 72, 102109.

Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1–28. http://www.jstor.org/stable/1811581.

Khan, S. A. R., Yu, Z., Belhadi, A., & Mardani, A. (2020). Investigating the effects of renewable energy on international trade and environmental quality. Journal of Environmental management, 272, 111089.

Lázaro, C. O., Salinas, A., López, R. A., & Ponce, P. (2019). Inversión extranjera directa y libertad económica como determinantes del crecimiento económico de Ecuador en el corto y largo plazo. Revista Economía y Política, (29), 105-124.

MAE. (2015). Política Nacional para la Gestión de la Vida Silvestre. Ministerio del Ambiente del Ecuador (MAE). Quito, Ecuador. Disponible en: https://www.ambiente.gob.ec/mae-trabaja-en-programas-de-mitigacion-y-adaptacion-para-reducir-emisiones-de-co2-en-ecuador/

Marques, A. C., & Caetano, R. (2020). The impact of foreign direct investment on emission reduction targets: Evidence from high-and middle-income countries. Structural Change and Economic Dynamics, 55, 107-118.

Majeed, A., Wang, L., Zhang, X., & Kirikkaleli, D. (2021). Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: Fresh evidence from GCC economies. Resources Policy, 73, 102204.

Meller, P., Poniachik, D., & Zenteno, I. (2013). América Latina y la bendición de los recursos naturales. Recursos naturales y diversificación exportadora, 5, 15-72.

Naredo, J. (1987). La economía en evolución: historia y perspectivas de las categorías básicas del pensamiento económico. Siglo XXI de España.

Opoku, E. E. O., & Boachie, M. K. (2020). The environmental impact of industrialization and foreign direct investment. Energy Policy, 137, 111178.

Ozcan, B., Tzeremes, P. G., & Tzeremes, N. G. (2020). Energy consumption, economic growth and environmental degradation in OECD countries. Economic Modelling, 84, 203-213.

Pedraza, J., Martínez, L., Suarez, L. A., Rojas, N., Ramírez, H., Mejía,A., & Casallas, J. (2018). Capturando el co2: De la industria para la industria. Innovación y Ciencia, 1, 1-8.

Pearson, P. (1994). Energy, externalities and environmental quality: Will development cure the ills it creates? Energy Studies Review, 6(3): 199-215.

Pigou, A. C. (1920). The economics of welfare. London: MacMillan.

Rahman, M. M. (2020). Environmental degradation: The role of electricity consumption, economic growth and globalisation. Journal of environmental management, 253, 109742.

Randall, A., & Castle, E. N. (1985). Land resources and land markets. In Handbook of natural resource and energy economics (Vol. 2, pp. 571-620). Elsevier.

Sani, Y. S., Abubakar, I. Y., Adam, S. B., Dharwal, M., Singh, P., & Sharma, P. (2020). Economic growth and environmental degradation in developing world: Evidence from Nigeria (1981–2019). Materials Today: Proceedings.

Shahbaz, M., Nasir, M. A., & Roubaud, D. (2018). Environmental degradation in France: the effects of FDI, financial development, and energy innovations. Energy Economics, 74, 843-857.

Shen, Y., Su, Z. W., Malik, M. Y., Umar, M., Khan, Z., & Khan, M. (2021). Does green investment, financial development and natural resources rent limit carbon emissions? A provincial panel analysis of China. Science of the Total Environment, 755, 142538.

Shahbaz, M., Nasreen, S., Abbas, F., & Anis, O. (2015). Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?. Energy Economics, 51, 275-287.

Saab, M. A., & Lacambra, J. M. (2020). Curva de Kuznets Ambiental: Estudio del impacto de la Inversión Extranjera Directa.

Ulucak, R., & Khan, S. U. D. (2020). Determinants of the ecological footprint: role of renewable energy, natural resources, and urbanization. Sustainable Cities and Society, 54, 101996.

Waqih, M. A. U., Bhutto, N. A., Ghumro, N. H., Kumar, S., & Salam, M. A. (2019). Rising environmental degradation and impact of foreign direct investment: an empirical evidence from SAARC region. Journal of environmental management, 243, 472-480.

Zambrano-Monserrate, M. A., Carvajal-Lara, C., Urgilés-Sanchez, R., & Ruano, M. A. (2018). Deforestation as an indicator of environmental degradation: Analysis of five European countries. Ecological Indicators, 90, 1-8.

Zhang, L., Godil, D. I., Bibi, M., Khan, M. K., Sarwat, S., & Anser, M. K. (2021). Caring for the environment: How human capital, natural resources, and economic growth interact with environmental degradation in Pakistan? A dynamic ARDL approach. Science of The Total Environment, 774.