Natural resource rents, clean energy, and green total factor productivity. Evidence from Vietnam in pre-post Covid era

Abstract

In the current era, plenty of natural resource green factors of production are getting the attention of governments, researchers, and policymakers. By considering the potential importance of the data, the current study explores the causal connection between the natural resource plenty and green total factors of production (GTFP). In the context of Vietnam, we collect the data from 2003 to 2022 to identify the resource curse phenomenon and how natural resource abundance help in achieving the SDGs via green factors of production and green methods of mining and feasting of natural resources. We construct an econometric theoretical framework to explore connectedness. Further robustness, heterogeneity, and asymmetric associations are observed with the application of appropriate tests. The study observes that resource curse is validated in the Vietnam context and plenty of natural resources adversely affect the GTFP. The study further observes the higher repressive effects of natural resources on GTFP in regions with higher green production. The study provides suggestions to improve the financial ecosystem via the provision of green finance to mitigate the hampering effects of resources on green total factors of production.