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Abstract The high pace of economic growth has posed many challenges. These challenges include depletion of natural resources, globalization challenges, and environmental degradation. The Middle East and North Africa (MENA) economies are rich in mineral resources. Economic globalization has put the MENA countries in the spotlight for the developed world. Despite the status of being a hotspot for mineral resource richness, there is limited research on the effect of natural resources and economic globalization on the environmental degradation of the MENA countries. This paper examines the effects of natural resource abundance and economic globalization on environmental quality by considering trade openness, urbanization, and economic growth from the year 1980 to 2018. We apply second‐generation panel cointegration techniques along with continuously updated fully modified (Cup‐FM) and continuously updated bias‐corrected (Cup‐BC) techniques. The findings show that natural resource abundance significantly improves environmental quality. Likewise, economic globalization also mitigates emissions levels in the MENA countries. In contrast, trade openness, urbanization, and economic growth significantly deteriorate environmental quality. The unidirectional link indicates natural resources and economic globalization create trade openness. The paper provides novel empirical evidence and policy recommendations for sustainable development goals.
Wu et al. (Thu,) studied this question.