Environment and Interdisciplinary Development

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

Document Type : Original Article

Authors

Navid Kargar Dehbidi 1
Jalal Henareh 2

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

2 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: The findings of this study indicate that an increase in resource rents derived from forestry, mining, and fossil fuel extraction contributes to higher greenhouse gas (GHG) emissions and a decline in environmental quality. Specifically, a one percent increase in forestry, mining, and fossil fuel rents is associated with a long-term rise in per capita GHG emissions of approximately 0.05%, 0.08%, and 0.01%, respectively. Furthermore, the results demonstrate that an increase in exports exacerbates environmental pollution. A one percent increase in exports is projected to raise per capita GHG emissions by about 0.007% in the long run. Conversely, a one percent increase in imports is expected to reduce per capita GHG emissions by approximately 0.01%.
Discussion: The empirical findings confirm a stable, long run relationship between natural resource extraction and greenhouse gas (GHG) emissions. Accordingly, it is recommended that deterrent measures such as imposing taxes and customs duties on raw timber exports and employing remote sensing tools for continuous forest cover monitoring be adopted to prevent further depletion of these natural assets. Additionally, mining activities should be supervised through environmental mechanisms and regulations, and a substantial portion of mining revenues should be allocated to establishing vegetative cover and enhancing environmental quality. Furthermore, one of the most effective strategies to mitigate the adverse environmental impact of fossil fuel consumption is the diversification of energy supply sources. The utilization of renewable energy sources, such as solar and wind power, which are independent of carbon combustion, can significantly reduce GHG emissions. Therefore, appropriate infrastructure should be developed to maximize the share of renewable energy. The results also indicate that trade expansion positively affects pollution levels through increased exports, while imports exert a negative effect. Thus, trade policies should be formulated in a manner that preserves biocapacity by preventing the export of goods that undermine domestic ecological resilience, thereby strengthening environmental sustainability. In conclusion, macroeconomic policy design must take into account the aforementioned environmental consequences, particularly the impacts of natural resource extraction and trade patterns based on the type of goods produced.

Keywords

Forests
Mines
Trade
Environmental Quality
Panel Cointegration Approach
Subjects
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Environment and Interdisciplinary Development
Volume 11, Issue 91
Spring 2026
Pages 40-53

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