Managing resource rents for low-carbon sustainability: the moderating roles of green finance, education and governance in Asian economies

This study empirically investigates the natural resource rents (NRR)-CO₂ emissions nexus in Asian countries, coupled with the moderating effects of green finance (GF), education (EDU) and governance quality (GQ).

The study uses a panel dataset (2001–2022) of 22 Asian countries for empirical analysis and employs a dynamic panel estimation framework with robustness analyses to evaluate the NRR-CO₂ emissions relationship and the moderating roles of GF, EDU and GQ. The findings are interpreted through the resource curse hypothesis (RCH), green finance theory (GFT), human capital theory (HCT) and institutional theory (IT).

The empirical results indicate that greater NRR leads to more CO₂ emissions, which provides empirical support for the RCH from an Asian viewpoint. GF and GQ significantly weaken the positive association between NRR and CO₂ emissions, suggesting that stronger financial and institutional frameworks can mitigate the environmental pressures associated with NRR. In contrast, EDU exhibits a positive direct and moderating association with CO₂ emissions. It reveals an unexpected education paradox in which improvements in educational development are not automatically translated into environmental sustainability, potentially reflecting the energy-intensive expansion of educational infrastructure and broader economic activities.

This is one of the pioneering studies that assesses the moderating effects of GF, EDU and GQ on NRR-CO₂ emissions, particularly in economies where environmental and resource rent issues are pressing. Furthermore, the study is the first to provide broader theoretical insights through innovatively integrating the RCH with theories on GFT, HCT and IT.