From mines to markets: how value-added critical minerals and green innovation stabilize energy security amid regulatory quality in resource-rich countries
摘要
The study examines the determinants of energy security in resource-rich countries, with a focus on the interaction between value-added critical minerals, green innovation (GI), and regulatory quality (RQ). Using panel data from 2005 to 2024 for resource-rich countries, we employ cointegration analysis and multiple linear regression (MLR) to establish the key relationships. The study also examined the moderate impact of regulatory quality on the relationship between energy security, value-added critical minerals, and green innovation. For this purpose, the study has employed the Panel Threshold Effect model, noting that relationships are heterogeneous and systematically change at a threshold level of regulatory quality. To confirm the estimated results, the study also employs two stages of the least squares regression as a robustness check. The findings suggest that gross fixed capital can contribute to energy security. In addition, green innovation and value-added critical minerals can improve energy security in resource-rich countries, but the positive impact may be outweighed by overregulation. Notably, the results of the two-stage least squares regression show that higher mineral rent may lead to a lower level of energy security, confirming the resource curse phenomenon. The particular evidence calls out policymakers in resource-rich countries to avoid overreliance on the extractive sector, as overreliance may result in a lack of diversification of energy resources and may increase the volatility in prices caused by depleting resources.