Politická ekonomie X:X | DOI: 10.18267/j.polek.1511

Natural Resource Dependency, Political Stability, and Environmental Sustainability in the G7: Role of Operational Behaviors of Multinational Firms Using Quantile Regression

Mohammad Ridwan, Anowar Hossain, Tasfia Mahjabin, Md. Emran Hossain, Afsana Akther, Mohd Ziaur Rehman, Md. Eleais
Mohammad Ridwan , Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh
Anowar Hossain , Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh
Tasfia Mahjabin , Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh
Md. Emran Hossain (corresponding author), Department of Agricultural Sciences, Texas State University, San Marcos, Texas, USA
Afsana Akther, Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh
Mohd Ziaur Rehman, Department of Finance, College of Business Administration, King Saud University, Riyadh, Saudi Arabia
Md. Eleais, Department of Economics, Noakhali Science and Technology University, Noakhali, Bangladesh

This study examines the impact of natural resource dependence, political stability, and the operational behaviors of multinational corporations (MNCs) on CO2 emissions in the G7 region from 1996 to 2021. Due to the non-normal distribution of the data, a quantile regression approach is employed to assess how these factors influence CO2 emissions across different emission levels. The results indicate that economic growth, natural resource reliance, and political stability contribute to higher CO2 emissions, whereas MNCs\' operation al behaviors and renewable energy use significantly reduce emissions. Robustness checks using Driscoll-Kraay Standard Errors, Generalized Least Squares (GLS), and Panel Corrected Standard Errors (PCSE) validate these findings. The causality test further reveals unidirectional causality from GDP, operational behaviors of MNCs, and natural resource rents to CO2 emissions, while renewable energy use exhibits a bidirectional causal relationship with emissions.

Keywords: Natural resources, operation behavior, political stability, renewable energy, quantile regression

Received: November 2, 2024; Revised: April 25, 2025; Accepted: May 5, 2025; Prepublished online: December 16, 2025 

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