Natural Resource Scarcity Fossil Fuel Energy Consumption A - 2024 - Geoscience
Natural Resource Scarcity Fossil Fuel Energy Consumption A - 2024 - Geoscience
Geoscience Frontiers
journal homepage: www.elsevier.com/locate/gsf
Research Paper
a r t i c l e i n f o a b s t r a c t
Article history: Natural resource scarcity, fossil fuel energy consumption, and total greenhouse gas emissions are critical
Received 10 July 2023 issues that require immediate attention. With the global population steadily increasing and economies
Revised 6 September 2023 expanding, the demand for natural resources, particularly fossil fuels, has experienced an unprecedented
Accepted 10 November 2023
surge. This surge in consumption is directly linked to the alarming rise in greenhouse gas emissions. The
Available online 11 November 2023
Handling Editor: Irfan Khan
study examines the nexus between agricultural nitrous oxide emissions and natural resource scarcity,
taking into account the dynamics of agriculture, forestry, fishing value addition, fossil fuels, and total
greenhouse gas emissions in top-emitting countries between 1971 and 2020. Natural resource scarcity
Keywords:
positively correlates with agriculture, forestry, fishing, fossil fuel energy consumption, and total green-
Resource scarcity house gas emissions. There is a decrease in natural resource scarcity in countries that emit agricultural
Non-renewable energy nitrous oxide, forestry, fishing emissions, fossil fuel energy consumption, and greenhouse gas emissions.
CO2 emissions Policy-makers may promote sustainable development, mitigate climate change, and ensure the long-
Top-emitting countries term viability of agricultural systems by addressing the dynamics of agriculture, forestry, and fishing
value addition in top-emitting countries. Through strategic policy interventions, supported by technology
transfer, capacity building, and market-based instruments, the agricultural, forestry, and fishing sector
can achieve a more sustainable future while addressing the challenges of natural resource scarcity.
Ó 2023 China University of Geosciences (Beijing) and Peking University. Published by Elsevier B.V. on
behalf of China University of Geosciences (Beijing). This is an open access article under the CC BY-NC-ND
license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
https://doi.org/10.1016/j.gsf.2023.101757
1674-9871/Ó 2023 China University of Geosciences (Beijing) and Peking University. Published by Elsevier B.V. on behalf of China University of Geosciences (Beijing).
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
protect existing resources, and promote better stewardship of nat- degradation, loss of biodiversity, and soil erosion. Solutions to nat-
ural resources. To this end, there needs to be a focus on conserva- ural resource scarcity include investing in new technologies, preci-
tion, reduced consumption, and sustainable development. sion agriculture, and sustainable practices, such as crop rotation
Conservation is an important part of natural resource manage- and no-till farming (EPA, 2022). Fig. 1 illustrates the decline in nat-
ment. This includes protecting and restoring areas of natural habi- ural resources in the top emitting countries India, China, and the
tat and conserving biodiversity in both land and marine United States. It provides a visual representation of the decreasing
ecosystems (Cai et al., 2022; Liu et al., 2022b). It also involves availability of resources such as water, forests, minerals, and
reducing the number of natural resources extracted from the envi- energy sources.
ronment. Reduced consumption is a key part of natural resource The nexus between nitrous oxide emissions and natural
management. This includes reducing the amount of energy, mate- resource scarcity is an important concern, as it has implications
rials, and water being used. It also includes making more efficient for the sustainability of global food production and the livelihoods
use of resources and reducing waste. Sustainable development is of people who depend on it. Nitrous oxide emissions are among the
also an important part of natural resource management. This most potent greenhouse gases and a major contributor to global
includes ensuring that development is done in a way that is eco- warming. It is also released from agricultural activities, such as
nomically sound and environmentally responsible. This includes using fertilizers and manure, as well as from burning biomass.
sustainable agriculture, renewable energy production, and respon- The dynamics of agriculture, forestry, and fishing value addition
sible forestry. These measures will help ensure that the world’s in top emitting countries are important in addressing nitrous oxide
natural resources are managed and preserved in a sustainable emissions and natural resource scarcity. Agriculture is the largest
long-term way. Governments, businesses, and individuals must source of nitrous oxide emissions, with activities such as fertilizer
take steps to ensure that natural resources are managed sustain- application, animal husbandry, and crop production contributing
ably. This is the only way to ensure our natural resources are avail- significantly to global emissions. In addition, forestry and fishing
able for future generations (Zakari and Khan, 2022a). activities also contribute to global nitrous oxide emissions. To
Environmental degradation and natural resource scarcity are reduce nitrous oxide emissions and natural resource scarcity, it is
today’s most pressing issues. The unsustainable use of natural important to understand the dynamics of agriculture, forestry,
resources, such as land, water, and air, as well as the destruction and fishing value addition in top-emitting countries. For example,
of natural habitats, are leading to a decrease in the quality and in China and India, where the agricultural sector is a major contrib-
availability of these resources. The main causes of environmental utor to nitrous oxide emissions, it is important to identify and
degradation and natural resource scarcity can be attributed to implement strategies to reduce emissions from fertilizer applica-
human activities, such as over-exploitation, deforestation, and land tion and animal husbandry (Ntinyari and Gweyi-onyango, 2021).
conversion for agricultural use. The effects of environmental degra- Fig. 2 depicts the rising levels of greenhouse gas emissions in India,
dation and natural resource scarcity are serious and far-reaching. China, and the United States. It portrays the increasing amounts of
Global food supplies are already threatened by soil degradation, carbon dioxide, methane, and other greenhouse gases released into
water scarcity, and climate change, while biodiversity loss puts the atmosphere. The figure highlights the urgency of addressing
entire habitats and species at risk (Simachew, 2020). this issue by showcasing the upward trajectory of emissions over
Furthermore, water, air, and land pollution can have serious a specific time frame.
health implications for humans and animals. To address environ- Similarly, it is important to reduce fishing emissions in coun-
mental degradation and natural resource scarcity, reducing human tries with large fisheries and at the same time, it is also important
dependence on natural resources and working toward sustainable to promote sustainable resource management and strengthen
development is essential. This means changing our lifestyles, such value addition in the agriculture, forestry, and fishing industries.
as reducing waste, eating more sustainably-sourced food, and This includes developing policies and strategies to promote the
using renewable energy sources. Governments and businesses efficient use of natural resources and encouraging investment in
must also take steps to reduce pollution and protect natural habi- research and development to increase the productivity of these
tats, for example, by implementing laws and regulations. Ulti- industries. Thus, the nexus between nitrous oxide emissions and
mately, environmental degradation and natural resource scarcity natural resource scarcity is an important issue that needs to be
are complex issues that require a global effort to tackle. We must addressed. Understanding the dynamics of agriculture, forestry,
all take responsibility for our actions and work together to ensure and fishing value addition in top emitting countries is essential
that our planet and its inhabitants are safe and secure for future for reducing nitrous oxide emissions and promoting sustainable
generations (Manisalidis et al., 2020). resource management. By implementing policies and strategies
This study’s first important question is how much agricultural that promote the efficient use of natural resources and investment
nitrous oxide emissions influence natural resource scarcity in the in research and development, it is possible to reduce nitrous oxide
top emitting countries. Agriculture has a significant impact on emissions and secure the future of global food production
the environment and natural resources. One of the primary sources (Freedman, 2018; Rinkesh, 2020).
of environmental degradation is nitrous oxide emissions from agri- This study’s second important question is how much agricul-
cultural activities. Nitrous oxide is a powerful greenhouse gas 300 tural forest, fishing, and raw material influence natural resource
times more effective at trapping heat than carbon dioxide. As glo- scarcity in the top emitting countries. Agriculture, forestry, and
bal temperatures rise due to climate change, nitrous oxide emis- fishing are essential in the global economy, providing food, fiber,
sions from agriculture are becoming increasingly concerning. and many other products. However, these industries are facing a
Various activities, such as applying synthetic fertilizers and animal growing challenge: the scarcity of natural resources. The world’s
manure, burning crop residues, and cultivating certain crops, cause population is growing, and the demand for food, timber, and other
nitrous oxide emissions from agriculture. Nitrous oxide emissions resources is growing. At the same time, land for agricultural pro-
can be reduced by changing agricultural practices and investing duction is being lost due to urbanization, deforestation, and other
in new technologies, such as precision agriculture and no-till farm- forms of land degradation. This leads to an unsustainable situation
ing. Natural resource scarcity is another important issue in agricul- where resource demand is outstripping supply. The consequences
ture today. With an increasing population, the demand for food is of this resource scarcity are being felt in many areas. For example,
rising, as is the demand for land, water, and other resources. This farmers are forced to use land more intensively and resort to
creates pressure on natural resources, leading to environmental unsustainable practices such as overgrazing, which can lead to soil
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Fig. 2. The greenhouse gas emissions of the top emitting countries are on the rise.
erosion and desertification. In the forestry sector, illegal logging world ensure that the agricultural, forestry, and fishing sectors
has become a serious problem in many parts of the world as timber can continue to provide a sustainable source of food, timber, and
companies seek to meet the increasing demand for wood. In the other resources for future generations (Zhang et al., 2022a).
fishing sector, overfishing is threatening many species and leading Another aspect this study address is how much fossil fuels and
to the collapse of some fisheries. Governments and other stake- total greenhouse gas emissions influence natural resource scarcity
holders need to take urgent action to address these issues (Gitz in the top emitting countries. Fossil fuels have long been the main
et al., 2016). This includes measures to strengthen the sustainable energy source for many societies, but their use comes with several
management of natural resources, such as improving land-use environmental and economic concerns. In addition, the availability
planning, protecting forests, and adopting better fishing practices. of fossil fuels is limited, meaning that economic and energy secu-
In addition, there is a need to invest in research and innovation to rity is at risk if we become too dependent on them. The long-
develop new technologies that can increase resource use efficiency term sustainability of fossil fuels is also in question due to the
and reduce waste. Promoting the sustainable use of natural finite nature of these resources. As demand for energy increases,
resources among all sectors of society is essential through educa- the cost of extraction and production of fossil fuels also rises. This,
tion and public awareness. Only by taking these steps can the combined with the potential for environmental damage, makes
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
using fossil fuels difficult. The need to reduce our reliance on fossil nomic development, can cause resource scarcity. These factors
fuels is clear. In addition, technological advances have also made it can cause the depletion of resources and changes in the availability
possible to capture and store energy from these sources for later and quality of resources. This can lead to increased competition for
use. The scarcity of natural resources is also a major concern. The resources and increased costs to access them (Freedman, 2018). As
depletion of forests and other ecosystems due to deforestation such, resource scarcity can majorly impact economic development
and over-exploitation of resources can lead to biodiversity loss and the environment. The direct impacts of resource scarcity
and ecosystem collapse. To address this issue, we must find ways include decreased resource availability, reduced resource quality,
to reduce our consumption of natural resources and develop more and increased competition for resources. The indirect impacts
efficient ways to use them. We can create a more sustainable include changes in the cost of accessing and using resources.
future by reducing our reliance on fossil fuels and better managing The impact of agricultural activities on the environment and the
our use of natural resources. We must work together to find solu- availability of natural resources is essential to developing effective
tions to ensure that future generations can access clean energy and strategies for reducing emissions and increasing resource effi-
a healthy environment. ciency. Natural resource scarcity and its effects on agriculture are
China, the United States, and India are the three countries with major concerns that must be addressed. Although very limited lit-
the highest carbon dioxide emissions into the atmosphere. China is erature is available on the subject, it is clear that the effects of nat-
the biggest emitter of CO2, contributing 28.1% of the world’s total ural resource scarcity can drastically impact the world’s
emissions. The United States is the second-largest emitter, con- agricultural systems. Therefore, it is essential to implement poli-
tributing 15.5%. India is the third largest emitter, contributing cies and practices that promote sustainability and reduce the
7.2%. These three countries are responsible for over half of the effects of climate change to ensure the long-term health of the
world’s total carbon dioxide emissions. This is due to their large world’s agricultural systems (Bailey and Katz, 2011).
populations and the rapid economic growth experienced by each It is also important to consider the longer-term impacts of
nation in recent decades. China has experienced the most rapid resource scarcity. For example, if resources become increasingly
economic growth, with its population now accounting for over scarce, this can lead to decreased productivity and economic
20% of the world’s population. This has led to a dramatic increase growth (Liu et al., 2023). In addition, resource scarcity can harm
in the country’s carbon dioxide emissions. Regarding per capita the environment, particularly in terms of the impacts of climate
emissions, the United States is the largest emitter in the world, fol- change. Therefore, it is important to consider how resource scarcity
lowed by Saudi Arabia and Australia. However, the total emissions can impact the environment and economy long term. In conclu-
of these three countries are much lower than the ones emitted by sion, while most studies of natural resources have focused on total
China, the United States and India. The three countries’ emissions natural resource rents, it is important to consider the aspect of nat-
combined account for only 17.1% of the world’s total emissions. ural resource scarcity. Resource scarcity can majorly impact
Reducing emissions from these three countries is essential if the decision-making, economic development, and the environment.
world is to progress toward reducing global carbon dioxide emis- Therefore, it is essential to consider the direct and indirect impacts
sions. Several policies and initiatives have been implemented to of resource scarcity in our studies of natural resources. Natural
reduce emissions from these countries, including the Paris Agree- resource scarcity can be defined as the lack of availability of
ment and the Clean Power Plan in the United States. However, resources necessary for human consumption and use (Azam
much more must be done to ensure that these countries take their et al., 2022). These resources include water, land, food, energy,
responsibilities seriously and reduce their emissions in line with and materials essential for human survival. As the global popula-
the Paris Agreement’s target of keeping global warming below tion continues to increase, the demand for these resources has
2 °C (Blokhin, 2023). grown significantly, leading to a scarcity of resources in certain
parts of the world (Lyu et al., 2022).
The causes of natural resource scarcity can be divided into two
2. Literature review categories: natural causes and human-induced causes. Natural
causes include climate change, natural disasters, and depletion of
Natural resource scarcity is a growing problem impacting the resources due to overuse (Zakari and Khan, 2022b). Human-
world’s population in various ways (Anderson, 2006; Fisher, induced causes result from human activities such as deforestation,
2018; Wang et al., 2020). This literature review will explore cur- overfishing, and pollution. These activities lead to the destruction
rent research on natural resource scarcity, looking at the causes, of the environment, leading to decreased natural resources. The
impacts, and potential solutions available. Studying natural impacts of natural resource scarcity vary depending on the region
resources has long been important in economics and other fields. and the resource type. Water scarcity is a major issue in some
While most research has focused on the total natural resource regions due to the lack of clean drinking water (Ali et al., 2023).
rents available (Anderson, 2006; Gutti et al., 2012; Marotta and Land scarcity has led to deforestation, soil erosion, and desertifica-
de Melo, 2012; Tsani, 2013; Barton, 2014; Blandford et al., 2014; tion in other regions. Food scarcity is also a major issue in many
Chêne, 2017; Freedman, 2018; Hansen and Gross, 2018; Luo areas due to the lack of access to healthy and nutritious foods.
et al., 2018; Mac Kinnon et al., 2018; Ahmadov and van der Borg, Energy and materials scarcity can have an economic impact as nat-
2019; Balsalobre-Lorente et al., 2019; Danish et al., 2019; ural resource costs rise. Potential solutions to the problem of nat-
González-Val and Pueyo, 2019; Hassan et al., 2019; Nawaz et al., ural resource scarcity include adopting sustainable practices,
2019; Studer, 2019; Ahmed et al., 2020a, 2020b; Huang et al., such as renewable energy sources, water conservation, and sus-
2020; Kwakwa et al., 2020; Pérez and Claveria, 2020; Qiang and tainable agriculture (Liu et al., 2022c). Developing new technolo-
Jian, 2020; Abbasi et al., 2021; Cui et al., 2021; Ma et al., 2021; gies, such as desalination, can also help improve water access.
Rahim et al., 2021; Wu et al., 2021, 2022; Chopra et al., 2022; Liu Other solutions include the implementation of policies and regula-
et al., 2022a; Shah et al., 2022; Wen et al., 2022; Zhang et al., tions that limit the destruction of the environment, as well as the
2022c), relatively few studies have considered natural resource establishment of global initiatives to promote the conservation of
scarcity. Schmidt (2019) explained that resource scarcity could natural resources.
majorly impact decision-making, and it is becoming increasingly Agriculture is a vital part of the global economy and necessary
important to consider in our studies of natural resources. Various to meet a growing population’s demands. However, the increasing
factors, including climate change, population growth, and eco- demand for agricultural products is putting a strain on the avail-
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
ability of natural resources, leading to scarcity (Hassan et al., 2022). Nitrous oxide is a potent greenhouse gas released from agricul-
Water scarcity is an especially pressing issue, as farmers need tural activities such as fertilization and manure application. As a
water to irrigate their crops, and animals need it for drinking. As result of this increase in emissions, the world is facing a severe
water resources are diverted from agricultural to urban use and cli- challenge when it comes to managing natural resources. Agricul-
mate change alters weather patterns, the amount of water avail- tural activities are responsible for a significant portion of nitrous
able to farmers is decreasing (Zahoor et al., 2022). This is leading oxide emissions. The nitrous oxide released from these activities
to less productive farms, higher prices for food, and a decreased depends on the fertilizer used, the amount of manure applied,
ability to feed the world’s growing population. Soil is another nat- and the number of crops grown. Agriculture is the leading con-
ural resource that is becoming increasingly scarce. Soil erosion due sumer of water resources, and as the population grows, more water
to deforestation and overfarming is leading to less fertile land. This, is needed to sustain the same production level. Water scarcity is a
in turn, results in lower crop yields and lower food quality. The significant issue in many agricultural regions, significantly impact-
scarcity of natural resources is also causing environmental degra- ing food security. Sustainable agricultural practices can help
dation. For example, deforestation has led to a decrease in biodi- reduce the strain on water resources and better use available
versity, as well as soil erosion and an increase in carbon dioxide resources. Forests are critical natural habitats, providing essential
emissions. In addition, overfishing has caused a decrease in oceanic resources such as wood and food. Forests also provide essential
biodiversity and an increase in ocean acidification (Awan et al., services such as carbon storage, water filtration, and habitat for
2022). wildlife. However, unsustainable forestry practices can lead to
The scarcity of natural resources is a major problem for agricul- deforestation, which can devastate the environment. Sustainable
ture and the world. Governments must invest in sustainable farm- forestry practices, such as sustainable logging and selective timber
ing practices, such as crop rotation, conservation tillage, and no-till harvesting, are essential for preserving forests. Fishing is a signifi-
farming, to address this problem. Furthermore, public education cant industry worldwide and is vital to many coastal communities.
about the importance of natural resource conservation can help However, overfishing is a primary concern and can lead to fish
to reduce overfishing and deforestation (Chen et al., 2023). Finally, stocks and marine biodiversity depletion. Sustainable fishing prac-
governments must invest in research and development to create tices, such as using sustainable gear and limiting the number of
new technologies to address natural resource scarcity. By taking fish caught, are essential for maintaining healthy fish stocks.
these steps, we can reduce the impact of natural resource scarcity The link between natural resource scarcity and fossil fuels is
on agriculture and create a more sustainable food system (Arslan undeniable. Fossil fuels are non-renewable resources that are being
et al., 2022). used at a rate much faster than they can be replenished. Burning
Fossil fuels are a finite resource that is rapidly depleting. Natu- these fuels releases much carbon dioxide and other greenhouse
ral resources, such as oil, coal, and natural gas, are finite resources gases, contributing to the global climate crisis. As the climate crisis
whose availability is limited in quantity. As this scarcity increases, worsens, the availability of natural resources decreases, leading to
finding alternative energy sources is becoming increasingly impor- further resource scarcity. The link between fossil fuels and
tant. The use of fossil fuels has had a significant impact on the envi- resource scarcity is also manifested in pollution. Pollution from
ronment. Carbon dioxide emissions from the burning of fossil fuels burning fossil fuels has caused damage to the environment, leading
are one of the major causes of global warming and climate change to reduced biodiversity and further depletion of natural resources.
(Ahmad et al., 2022). Burning fossil fuels can lead to air pollution, Additionally, the use of fossil fuels has resulted in the displace-
acid rain, and water contamination. We must try to conserve and ment of local communities, leading to a decrease in the availability
reduce our use of these resources to reduce our dependence on fos- of resources. To address the link between natural resource scarcity
sil fuels. This can include using renewable energy sources such as and fossil fuels, we must transition away from these non-
solar, wind, and geothermal. Increasing energy efficiency, using renewable sources and towards renewable sources such as solar
energy-saving devices, and implementing energy-efficient prac- and wind power. This transition can be challenging, but we need
tices can help reduce our dependence on fossil fuels. We can also to maintain the health of the planet and its resources. Additionally,
take steps to increase the availability of natural resources we need to focus on conservation efforts, such as reducing con-
(Tawiah et al., 2021). This includes conserving existing resources, sumption and increasing reuse and recycling. Doing so can make
reclaiming resources from waste, and increasing the efficiency of a real difference in combating resource scarcity and preserving
resource extraction and utilization. Investing in research and our planet for future generations.
developing new technologies that can help us find alternative As the world’s population grows, so does the demand for natu-
energy sources is also important. This can include renewable ral resources. This increased demand has led to a decrease in the
energy sources, such as biofuels, and new technologies, like hydro- availability of natural resources and an increase in their cost. One
gen fuel cells. The scarcity of natural resources and the environ- of the most pressing issues associated with this scarcity is the rise
mental impact of fossil fuels make it essential that we take steps of green gas emissions caused by the burning of fossil fuels to meet
to reduce our dependence on these finite resources. We can move the energy demand. Green gas emissions, such as carbon dioxide,
towards a sustainable future by conserving, reclaiming, increasing are the primary contributors to climate change and global warm-
efficiency and investing in research and development (Bilal et al., ing. The depletion of natural resources also contributes to the prob-
2022). lem of green gas emissions, as it requires more fossil fuels to be
burned to extract the resources. In addition, burning fossil fuels
for energy production releases harmful pollutants into the air, con-
tributing to air pollution and health problems in people and ani-
3. Data and theoretical linkages mals. The most effective way to reduce natural resource scarcity
and green gas emissions is to reduce energy demand and switch
This study examines the nexus between agricultural nitrous to renewable energy sources. Renewable energy sources, such as
oxide emissions and natural resource scarcity, considering the solar, wind, geothermal, and hydropower, are renewable and help
dynamics of agriculture, forestry, fishing value addition, fossil reduce greenhouse gases emitted into the atmosphere. The more
fuels, and total greenhouse gas emissions in top-emitting coun- we use renewable energy sources, the more we can reduce the
tries. The top emitting countries included in this study are China, strain on natural resources and emissions.
the United States, and India.
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Other strategies that can help reduce natural resource scarcity The null hypothesis is that the variable has a unit root, and the
and green gas emissions include reducing waste, increasing recy- alternative hypothesis is that the variable is stationary.
cling, and conserving energy. By reducing waste, we can reduce The test statistic is calculated as follows:
the strain on natural resources and the energy needed to produce qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
goods. Similarly, recycling helps reduce the need for new resources Þ= ½ð1=TÞRðXt X
T statistic ¼ ðRXt X Þ2 ð4Þ
and the energy used to manufacture them. Lastly, conserving
where X is the mean of the variable X over the period, Levin, Lin &
energy by turning off lights when not in use and investing in
energy-efficient appliances can help reduce the amount of energy Chu Im, Pesaran, and Shin W-stat ADF - Fisher Chi-square is an
used, thus reducing the number of green gas emissions. essential tool used in econometrics to test the stationarity of a time
series. The Levin, Lin & Chu Im (LLC) test is a modified version of the
Augmented Dickey-Fuller Test (ADF) and is used to detect the order
3.1. Model
of integration of a time series. The LLC test is based on the model’s
assumption of a unit root but is more potent than the traditional
This study examines the nexus between agricultural nitrous
ADF due to including a lagged dependent variable. The Pesaran
oxide emissions and natural resource scarcity, considering the
and Shin (PS) test is another variation of the ADF test, but instead
dynamics of agriculture, forestry, fishing value addition, fossil
of using a lagged dependent variable, it uses an autoregressive lag
fuels, and total greenhouse gas emissions in top-emitting countries
structure. The PS test is more powerful than the LLC test for detect-
from 1971 to 2020.
ing the order of integration of a time series. Finally, the Fisher Chi-
NRSit ¼ b0 þ b1 ANOit þ b2 AFFit þ b3 FFEit þ b4 TGGit þ eit ð1Þ square test is another famous test used to determine the stationar-
ity of a time series. This test uses the null hypothesis that the series
where natural resource scarcity ðNRSÞ is the dependent variable, follows a unit root process. If the null hypothesis is rejected, then
agricultural nitrous oxide emissions ðANOÞ, agriculture, forestry, the series is said to be stationary. All these tests are used to deter-
and fishing ðAFFÞ, fossil fuel energy consumption ðFFEÞ, and total mine the stationarity of a time series, which is an essential factor
greenhouse gas emissions ðTGGÞ are the independent variables. t when analyzing the data.
is included time, and i is the cross-section. Total natural resources
rents are the percent of GDP, agricultural nitrous oxide emissions 3.4. Long-run estimates
are in thousand metric tons of CO2 equivalent, agriculture, forestry,
and fishing is in value-added as a percent of GDP, fossil fuel energy One-step dynamic panel data estimation is a method for esti-
consumption are as a percent of total energy consumption and total mating the effect of a given explanatory variable on a given out-
greenhouse gas emissions are in kt of CO2 equivalent. Data is col- come variable over time. This method is advantageous when
lected from the World Development Indicators. dealing with panel data, as it allows for estimating parameters that
account for both within- and between-group effects. The one-step
3.2. Cross-section dependence (CD) dynamic panel-data estimator utilizes an iterative estimation pro-
cedure that assumes that the explanatory and outcome variables
In general, cross-section dependence is characterized by a feed- are related linearly. In this approach, the regression equation is
back loop in which the performance of one part of the system estimated for each period separately, and then the parameters
affects the performance of another part and vice versa. This can are adjusted to account for the correlation between observations
lead to various outcomes, from mutually beneficial relationships within the same period. The one-step dynamic panel-data estima-
to cycles of competition and cooperation. As such, understanding tor is advantageous in that it allows for estimating the effect of a
cross-section dependence is critical to understanding the behavior given explanatory variable on a given outcome variable even in
of a more extensive system and predicting how it may respond to the presence of many observations.
environmental changes. In many cases, cross-section dependence Additionally, this method can capture the effects of changes in
is an essential factor in determining the overall performance of a the explanatory variable over time and the effects of any unob-
system. For example, it is essential to consider how different parts served factors. In addition, the one-step dynamic panel-data esti-
of the chain are related to operating efficiently in a supply chain. mator allows estimating parameters unaffected by outliers or
Let X be the variable of interest, T be the time, and N be the number measurement errors. Overall, one-step dynamic panel data estima-
of observations. The null hypothesis is that the variable is station- tion is a powerful tool for estimating the effect of a given explana-
ary, and the alternative hypothesis is that the variable is non- tory variable on a given outcome variable over time. This method
stationary or has a unit root. can be used to capture both within- and between-group effects
The test Pesaran (Pesaran, 2007) cross-section dependence and to account for the effect of changes in the explanatory variable
statistic is calculated as follows: over time. Additionally, this method can be used to estimate
qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi parameters that are not affected by the presence of outliers or
Þ= ½ð1=NÞRðXt X
T statistic ¼ ðRXt X Þ2 ð2Þ measurement errors. For robust analysis, we use robust regression
in this study. The robust regression can identify influential obser-
where X is the mean of the variable X over the cross-section.
vations vital for understanding the relationship between the
By looking at how two datasets are correlated across multiple dependent and independent variables. This can be especially useful
cross-sections, CD can also help to compare different datasets for interpreting the results of a regression model. Overall, robust
and identify any similarities or differences between them. regression is a powerful tool for analyzing data with outliers or
CD ¼ R1 =R2 ð3Þ incorrect data points. It can provide more reliable results than
OLS regression and can be used in various applications, such as
where R1 and R2 are the cross sections of the two particles in the predictive modeling and identifying influential observations.
system (Pesaran, 2021).
4. Results and discussion
3.3. Panel unit root tests
Table 1 provides descriptive statistics of the top emitting coun-
Let X be the variable of interest and T be the period. tries using correlations and mean, median, maximum, minimum,
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Table 1
An overview of descriptive statistics.
and standard deviation values. There is a strong correlation Table 3 presents the outcome of panel unit root tests of Levin,
between fossil fuel energy consumption, total greenhouse gas Lin & Chu t*, Im, Pesaran, and Shin W-stat, ADF - Fisher Chi-
emissions, and natural resource scarcity. Fossil fuels are a major square, and PP - Fisher Chi-square for five variables: natural
contributor to greenhouse gases, leading to increased global tem- resource scarcity, agricultural nitrous oxide emissions, fossil fuel
peratures that hurt natural resources. In the top emitting countries, energy consumption, agriculture, forestry, and fishing and value-
a positive correlation exists between agriculture and forestry and added. At a level, some variables may not change over time, mak-
natural resource scarcity. This is because the high use of agricul- ing them stationary. However, most variables may fluctuate over
tural and forestry practices in these countries can destroy natural time, making them non-stationary. This means the variable’s value
resources, such as soil and water. As a result, natural resource scar- can change depending on the observed period. For example, while
city is increased, and its negative impact is felt in the environment. employment rates may be constant in the short term, they may
Ultimately, the correlations between fossil fuel energy consump- vary over a year. Similarly, stock prices may rise and fall depending
tion and total greenhouse gas emissions, as well as the correlations on external factors such as news, economic indicators, and market
between agriculture and forestry and natural resource scarcity, are sentiment. Therefore, it is important to consider the period when
negative for the environment. Agricultural nitrous oxide emissions measuring a variable in order to ensure accurate results. The anal-
and fossil fuel energy consumption are two variables with highly ysis results suggest that all of the variables in this study are sta-
fluctuating data sets. The highest standard deviation values of tionary at the 1% significance level. This is significant because it
these two variables reflect this fluctuation. This indicates the high means that the variables do not vary over time; thus, they can be
level of variability in the data set, as the standard deviation mea- reliably studied and compared. This also allows us to draw conclu-
sures how much the values of a data set differ. The large standard sions from the data and accurately predict the variables’ behavior.
deviation values for these two variables suggest a wide range of As a result, this analysis is an important step in understanding the
values within the data set and that these values can vary greatly. dynamics of the variables in this study.
This variability will likely continue as the data set constantly A one-step dynamic panel data estimation and a robust regres-
changes. sion over the long run are presented in Tables 4 and 5. Natural
Fig. 3 presents a descriptive raw data trend analysis in the top resource scarcity negatively impacts top-emitting countries due
emitting countries - India, China, and the United States. It show- to agricultural nitrous oxide emissions. Natural resource scarcity
cases the statistical patterns and variations in the data, providing positively correlates with agriculture, forestry, fishing, fossil fuel
insights into the key factors influencing emissions and resource energy consumption, and total greenhouse gas emissions. There
declines. The area chart in Fig. 4 provides a visual representation is a decrease in natural resource scarcity in countries that emit
of the contribution of different sectors to natural resource scarcity, agricultural nitrous oxide, forestry, fishing emissions, fossil fuel
agricultural nitrous oxide emissions, fossil fuel energy consump- energy consumption, and greenhouse gas emissions.
tion, agriculture, forestry, and fishing and value-added in India, The coefficient value of agricultural nitrous oxide emissions is
China, and the United States. It clearly depicts the proportion of negative and significant at 10% level of significance. The negative
emissions from sectors such as transportation, industry, agricul- coefficient value of agricultural nitrous oxide emissions shows that
ture, and energy production. a 1% increase in agricultural nitrous oxide emissions decreases nat-
Table 2 revealed the results of the cross-sectional dependence ural resource scarcity by 0.0968695%. Agricultural nitrous oxide
test for five variables: natural resource scarcity, agricultural emissions are a major contributor to global warming and climate
nitrous oxide emissions, fossil fuel energy consumption, agricul- change, increasing natural resource scarcity. Nitrous oxide, or
ture, forestry, and fishing and value-added. The test results showed N2O, is a potent greenhouse gas released as a byproduct of activi-
a positive correlation between natural resource scarcity and agri- ties such as applying synthetic fertilizers and burning biomass.
cultural nitrous oxide emissions. In contrast, fossil fuel energy con- When these emissions are released into the atmosphere, they trap
sumption, agriculture, forestry, fishing, and value-added negatively heat and contribute to global warming. In the agricultural sector,
correlated with total greenhouse gas emissions. This indicates a nitrous oxide emissions account for 6%–7% of global greenhouse
link between natural resource scarcity and agricultural nitrous gas emissions. This has a significant impact on the availability of
oxide emissions and a relationship between the other four vari- natural resources. As global temperatures rise due to these emis-
ables and total greenhouse gas emissions. Additionally, the results sions, drought and desertification in some areas reduce fresh water
suggest that natural resource scarcity and agricultural nitrous and arable land availability. In addition, rising sea levels due to
oxide emissions may increase total greenhouse gas emissions, melting ice caps and glaciers put pressure on coastal areas, leading
whereas the other four variables may reduce them. to saltwater intrusion and increased erosion. The effects of nitrous
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
oxide emissions on natural resources are not just limited to the cultural practices can lead to soil degradation and erosion, leading
atmosphere. The nitrogen content of nitrous oxide can also leach to soil fertility losses, water pollution, and land degradation. For-
into soils and water sources, leading to nutrient pollution. This estry has also had a major impact on natural resource scarcity. Log-
has a direct impact on the availability of food resources, as well ging activities are one of the leading causes of deforestation and
as aquatic ecosystems. Additionally, it can lead to an increase in the destruction of natural habitats. Additionally, burning wood
algal blooms, resulting in oxygen depletion in water sources. for energy production can lead to air pollution, and using wood
Nitrous oxide emissions have serious implications for natural for construction can lead to soil degradation and land loss. Fishing
resource scarcity, and the effects on the global climate will only has also had a major impact on natural resource scarcity. Fishing
continue to worsen if nothing is done to reduce these emissions. activities can destroy marine habitats, overfishing, and the deple-
Reducing nitrous oxide emissions from agricultural sources is tion of fish stocks. Additionally, fishing activities can lead to water
important to mitigate the impacts of global warming and climate pollution, and the use of fish for food production can lead to the
change. This could be done by improving fertilizer management, depletion of natural resources. Overall, agriculture, forestry, and
increasing the efficiency of fertilizer application, and promoting fishing have significantly impacted natural resource scarcity. These
the use of organic fertilizers and other practices that reduce nitrous industries have caused deforestation, soil erosion, air pollution,
oxide emissions. By doing so, we can help reduce nitrous oxide water pollution, and overfishing, all of which have had a major
emissions’ impact on natural resource scarcity. impact on the environment. If these industries are not managed
The coefficient value of agriculture, forestry, and fishing is pos- properly, natural resource scarcity will remain a major issue.
itive and significant at 1% significance level. The positive coefficient The coefficient value of fossil fuel energy consumption is posi-
value of agriculture, forestry, and fishing shows that a 1% increase tive and significant at 1% significance. The positive coefficient value
in agriculture, forestry, and fishing increases natural resource scar- of fossil fuel energy consumption shows that a 1% increase in fossil
city by 1.403803%. Agriculture, forestry, and fishing are three of the fuel energy consumption increases natural resource scarcity by
most important industries in the world. The impact these indus- 1.385596%. Fossil fuels are a finite, non-renewable source used
tries have on natural resource scarcity is significant and far- for centuries as a major energy source. However, they have
reaching. Agriculture relies heavily on land for production, and increasingly come under fire due to the negative environmental
the vast amounts of land needed for the industry can lead to defor- impacts of their use. One of the major issues associated with fossil
estation and the destruction of natural habitats. Additionally, agri- fuel energy consumption is the scarcity of natural resources. Burn-
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Table 3
Panel unit root testing.
Level
Methods/Variables Levin, Lin & Chu t* Im, Pesaran and Shin W-stat ADF - Fisher Chi-square PP - Fisher Chi-square
NRS 0.77625 1.82281* 13.5890* 11.9647*
ANO 4.06558*** 2.18834* 14.4757* 19.2729*
AFF 0.36327 1.35134 2.04347 1.56120
FFE 2.67662** 0.30892 7.05448 7.99348
TGG 1.36828 2.35849 2.43734 3.15821
1st Difference
NRS 7.77386*** 6.72240*** 52.4799*** 80.2536***
ANO 6.23660*** 6.00218*** 46.5795*** 90.2986***
AFF 5.85792*** 7.57456*** 60.6516*** 80.1411***
FFE 3.03474*** 4.02853*** 28.0678*** 59.5704***
TGG 3.48406*** 7.18369*** 57.1910*** 77.7600***
Table 4
Instrumental one-step dynamic panel-data estimation GMM-type: L(2/.).
Table 5
Robust regression methods-Huber Biweight iteration.
emissions on natural resource scarcity is far-reaching and wide- sion, the impact of total greenhouse gas emissions on natural
ranging. As the planet continues to warm, resources such as fresh- resource scarcity is far-reaching and wide-ranging. From ocean
water, land, and food are becoming increasingly scarce. The acidification to the disruption of ecosystems, the effects of global
increased air pollution resulting from greenhouse gas emissions warming are putting our planet’s resources under increasing
also contributes to severe weather events that can lead to floods, threat. To protect the environment and ensure the sustainability
droughts, and other disasters that deplete resources. Climate of our planet’s resources, we must address the issue of climate
change is also exacerbating existing water scarcity issues. Rising change and commit to reducing our collective emissions.
temperatures can decrease precipitation in some areas, reducing Fig. 5 displays kernel density dot plots for natural resources,
water availability for agricultural use and human consumption. agricultural value-added, natural resource scarcity, agricultural
Additionally, global warming contributes to melting glaciers and nitrous oxide emissions, fossil fuel energy consumption, agricul-
polar ice caps, leading to rising sea levels that can contaminate ture, forestry, and fishing and value-added in India, China, and
freshwater sources. The depletion of natural resources due to the United States. It allows for a detailed examination of the distri-
greenhouse gas emissions also directly affects biodiversity. As bution and concentration of emissions across different regions or
habitats shrink and become degraded, many species of plants time periods. Fig. 6 presents individual cross-section error bars
and animals are becoming endangered. In addition, increased air for natural resource scarcity, agricultural nitrous oxide emissions,
pollution and weather events can disturb the delicate balance of fossil fuel energy consumption, agriculture, forestry, and fishing,
nature, leading to the loss of biodiversity and the disruption of and value-added in India, China, and the United States. It provides
important ecosystems. The effects of natural resource scarcity a graphical representation of the variability and uncertainty asso-
resulting from greenhouse gas emissions can have drastic eco- ciated with the emission estimates. The combined lower triangular
nomic and social ramifications. With fewer resources available, matrix in Fig. 7 shows the interrelationships between emissions,
economic growth can stunt, leading to higher unemployment and natural resource declines, and other relevant factors in India,
poverty. In addition, the cost of food and other goods can increase, China, and the United States. It provides a comprehensive overview
leading to higher living costs. Furthermore, the impacts of natural of the complex interactions and dependencies among natural
resource scarcity can be especially hard on vulnerable populations, resource scarcity, agricultural nitrous oxide emissions, fossil fuel
such as the poor and marginalized, who are more likely to suffer energy consumption, agriculture, forestry, fishing, and value-
from food insecurity and lack of access to clean water. In conclu- added.
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Fig. 5. Kernel density dot plots for the top emitting countries.
5. Conclusion and policy implications nology and sustainable practices such as circular economies,
renewable energy, and responsible waste management. We must
The management of natural resources is of paramount impor- also work to reduce our overall resource consumption by investing
tance to the environment. As resources become increasingly scarce, in renewable energy sources and shifting away from fossil fuels.
finding ways to manage them effectively and responsibly becomes This will help us reduce our dependence on finite resources and
increasingly important. This means creating systems that monitor reduce the amount of carbon dioxide released into the atmosphere.
and track resource use and policies that create incentives for con- Finally, we must invest in research and development to find inno-
servation and sustainability. One of the main methods for manag- vative solutions for natural resource scarcity and environmental
ing natural resources is using conservation areas. These are areas sustainability. This includes developing new energy sources, find-
specifically set aside for protecting and managing natural ing ways to increase resource use efficiency, and investing in sus-
resources. They protect resources from over-exploitation and tainable practices. In order to create a more sustainable future, we
ensure that these resources are used sustainably. Another method must act now to reduce our resource consumption and shift our
for natural resource scarcity management is using renewable focus away from short-term economic growth. We must make con-
energy sources. Renewable energy sources such as solar, wind, scious decisions that prioritize the environment and prioritize
and hydropower are becoming increasingly popular as they pro- resource conservation. With the right investments and initiatives,
vide clean, renewable sources of energy that can be used to reduce we can create an economically and environmentally sustainable
our reliance on non-renewable resources. Finally, education is an future.
important factor in natural resource scarcity management. Educat- The long-run estimates suggest agricultural nitrous oxide emis-
ing people on responsible resource management and conservation sions decrease natural resource scarcity in top-emitting countries.
techniques can help to ensure that resources are used responsibly In recent years, agricultural nitrous oxide emissions and natural
and with consideration for the environment. In conclusion, natural resource scarcity have become increasingly concerning issues.
resource scarcity management is essential to protecting our envi- Nitrous oxide is a potent greenhouse gas with a global warming
ronment. We can create a sustainable future for our planet using potential 300 times higher than carbon dioxide. Natural resource
conservation areas, renewable energy sources, and educational scarcity is a result of overuse and pollution, which has decreased
campaigns. the availability of clean water, fertile land, and other resources
Natural resource scarcity and environmental sustainability are essential to agricultural practices.
two of the most pressing concerns of our time. As the global pop- Given the scale of these issues, policy implications must
ulation continues to grow, the demand for resources is increasing urgently be addressed. The first step is to reduce nitrous oxide
exponentially, and the rate at which we are depleting natural emissions from agricultural activities. This can be done through
resources is unsustainable. To maintain our current standard of liv- nitrification inhibitors, which slow the conversion of ammonium
ing, we must find ways to limit our resource consumption and to nitrate and reduce nitrous oxide emissions. Additionally, preci-
reduce our environmental footprint. At the heart of the issue is that sion agriculture can reduce the amount of fertilizer and other
our current economic system is based on the premise of infinite inputs applied, thus reducing nitrous oxide emissions.
growth, but in a finite world, this is simply impossible. We must The second step is to adopt sustainable agricultural practices
find new ways to do business that are not dependent on the rapid that reduce the depletion of natural resources. This can be done
extraction of resources. We must shift our focus from short-term through conservation practices such as cover crops and no-till
economic growth to long-term environmental sustainability. This farming, which reduce soil erosion, improve soil fertility, and pre-
means making conscious decisions that prioritize environmental vent runoff. Water conservation strategies such as drip irrigation
protection and resource conservation. One of the most effective and water-holding polymers can also reduce water demand and
ways to reduce resource depletion is to increase resource use effi- improve water-use efficiency.
ciency. We must use fewer resources to produce a given amount of Finally, policymakers must invest in research and development
goods and services. This can be achieved through improved tech- of new technologies that can further reduce nitrous oxide emis-
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J. Wang and W. Azam Geoscience Frontiers 15 (2024) 101757
Declaration of Competing Interest human capital, urbanization, economic growth, and ecological footprint in
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