The contribution of resource-based taxation, green innovation, and minerals trade toward ecological sustainability in resource-rich economies

In recent years, resource depletion and environmental sustainability have emerged as prominent challenges confronting the contemporary world. The overreliance on the exploitation of natural resources not only exacerbates environmental degradation but also disrupts industrial structures and undermines societal well-being. In response to these environmental and ecological issues, numerous countries and regions have implemented various policy tools and measures aimed at addressing climate change and promoting sustainable development. Therefore, this study is designed to investigate the contribution of resource-based taxation, green innovation, and mineral trade to the ecological footprint in 39 resource-rich economies from 2000 to 2022. We employed the instrumental variable approach to derive empirical findings. The results revealed that resource-based environmental taxation, green innovation, and human capital significantly reduce the ecological footprint. In contrast, trade in mineral resources, GDP, natural resource rent, and natural capital primarily contribute to the ecological footprint. The interaction effect of green innovation and taxation demonstrates that the adverse impacts of mineral trade can be mitigated when exports are integrated into a production process driven by green innovation. Furthermore, the empirical results confirm that the imposition of resource-based environmental taxes is beneficial in the conservation of natural capital. Based on these findings, this study offers multiple policy implications that could be valuable for promoting sustainable resource consumption and fostering ecological sustainability in resource-rich economies. © 2024