Managing Natural Resources through Sustainable Environmental Actions: A Cross-Sectional Study of 138 Countries

Abstract

Management of natural resources is pivotal for sustained economic growth—the increasing ecological footprints causing biocapacity deficit threaten the resource conversation agenda. The study identified the potential causes and consequences of natural resource depletion in a broad cross-section of 138 countries. Ecological footprints, international migrant stocks, industrial value-added, and population growth influenced natural resource capital across countries. The results show that ecological footprints, industrial value-added, and population growth are the detrimental factors of resource capital. In contrast, continued economic growth is helpful to conserve natural resources for future generations. The rise and fall in the natural resource degradation are evident in the wake of international migrants’ stocks to support an inverted U-shaped relationship between them. The Granger causality inferences confirmed the one-way linkages, running from international migrant stocks, economic growth, and population growth to natural resource degradation. It verifies migrants-led, affluence-led, and population-led resource degradation. Ecological footprints Granger causes industrial value-added across countries. The forecasting estimates suggested that economic growth would likely to influenced greater in magnitude to resource degradation by its innovation shocks of 4.791%, followed by international migrant stocks, population growth, ecological footprints, and industrial value added by their innovation shocks of 4.709%, 1.829%, 1.247%, and 0.700%, respectively. The study concludes that international migrant stocks should manage smartly, causing more resource degradation via a channel of increasing biocapacity deficit across countries.