The Impact of Natural Resource Extraction on Environmental Quality in D-8 Countries

Document Type : Original Article

Authors

1 Assistant Professor, Economic, Social and Extension Research Department, West Azerbaijan Agricultural and Natural Resources Research and Education Center (AREEO), Urmia, Iran

2 Assistant Professor, Forests and Rangelands Research Department, West Azerbaijan Agricultural and Natural Resources Research and Education Center (AREEO), Urmia, Iran

10.22034/envj.2025.507109.1475
Abstract
Introduction: The D-8 Countries was established to promote regional agreements, strengthen economic relations, and increase the collective influence of its member states in global markets. The D-8 group includes Iran, Turkey, Pakistan, Malaysia, Indonesia, Nigeria, Egypt, and Bangladesh, which exhibit diverse ecological and climatic conditions. One of the group’s strategic goals is to enhance food security and ensure energy supply through joint investments in agriculture and natural resources. Data on greenhouse gas emissions indicate that environmental quality in these countries has declined rapidly over the past two decades. In this context, the present study investigates the impact of natural resource extraction on environmental quality, focusing on greenhouse gas emissions in the D-8 Islamic countries. This research can contribute to a clear understanding of the current state of resources, support future studies, and promote accurate, evidence-based planning in the environmental field.
Materials and Methods: In this study, based on the stationarity properties of the variables, the panel cointegration approach was applied. Furthermore, according to the results of the Pedroni and Kao cointegration tests, the short-run relationship was estimated using the Error Correction Model (ECM), while the long-run relationship was estimated using the Fully Modified Ordinary Least Squares (FMOLS) method.
Results and Discussion: The results reveal a long run relationship between the studied variables and greenhouse gas emissions. Specifically, increases in rents from forest harvesting, mining, and fossil energy sources lead to higher greenhouse gas emissions and a decline in environmental quality. In the long run, a 1% rise in rents from forest harvesting, mining, and fossil energy sources is associated with an approximate increase of 0.05%, 0.08%, and 0.01% in per capita greenhouse gas emissions, respectively. Therefore, it is recommended to monitor forest cover by imposing taxes and customs duties on wood exports and utilizing remote monitoring tools. Additionally, mining activities should be regulated under environmental laws, with a portion of mining revenues allocated to enhancing vegetation cover. Moreover, the most effective way to mitigate the impact of fossil energy consumption on pollution emissions is to implement a policy that diversifies energy sources. Utilizing renewable energies, such as solar and wind power, can significantly reduce greenhouse gas emissions. Therefore, it is recommended to monitor forest cover by imposing taxes and customs duties on wood exports and utilizing remote monitoring tools. Additionally, mining activities should be regulated under environmental laws, with a portion of mining revenues allocated to enhancing vegetation cover. Moreover, the most effective way to mitigate the impact of fossil energy consumption on pollution emissions is to implement a policy that diversifies energy sources. Utilizing renewable energies, such as solar and wind power, can significantly reduce greenhouse gas emissions.Therefore, developing appropriate infrastructure to support renewable energy use is essential. The study’s results showed that increasing exports and imports have positive and negative impacts on pollution emissions, respectively. Therefore, it is recommended that trade policies focus on preserving biological capacity by regulating the export of polluting goods. More broadly, the environmental consequences of research on the effects of natural resource extraction and the trade of goods on pollution emissions should be carefully considered.

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Articles in Press, Accepted Manuscript
Available Online from 02 September 2025