Abstract
The study examines the relationship between mineral resource prices, renewable energy consumption, scientific advancement, mineral resource trading, production, and resource extraction demand in the top 10 resource-abundant economies from 1995 to 2020. The study uses two well-known theoretical models, the “Global Value Chain Theory” and the “Energy Transition Theory.” Short-term, the findings suggest that resource pricing has a negative effect on its demand, whereas long term, it has a favourable effect. The research also reveals that using renewable energy sources increases the need for mineral resources. The findings imply that renewable energy technology raises demand for mineral resources in the short term and decreases mineral resource demand in the long run. In the long term and under the fixed effect model across nations, mining demand raises as industry value increases and trade openness increases. Trading of mineral resources has a multiplier effect on mining demand. Granger causality estimates verify the cyclical nature of the link between the demand for, the price of, and the trade of natural resources. The results show that the energy business benefits from establishing laws and regulations related to the energy transition, which may increase funding for renewable energy R&D.
•COP26 assesses mineral markets' response to renewable energy progress in resource-rich countries.•Mineral resource pricing (MRP) and its trading are increasing and decreasing mineral resource demand, respectively.•Renewable energy demand and technological innovation increases mineral resource demand (MRD).•Renewable energy technology and industrial value added decreases resource demand in a long-run.•Green technology advancement-led resource demand, while feedback relationship found between MRP and MRD.