Energy strategies must be paired with economic reform to cut ecological damage

A new global study reveals that economic dependencies on resource extraction and international trade are significantly weakening the environmental benefits of global energy transitions. The findings raise critical concerns about whether shifting to renewable energy is enough to curb long-term ecological degradation without deeper structural reforms.

The peer-reviewed study, titled "Energy transition and environmental sustainability: the interplay with natural resource rents and trade openness," was published in Humanities and Social Sciences Communications. It presents an empirical analysis of 162 countries from 1990 to 2022, focusing on the relationship between clean energy adoption and environmental sustainability, as measured through the ecological footprint. The authors argue that while clean energy typically improves ecological outcomes, its impact is often compromised in nations with high levels of trade openness and reliance on natural resource rents.

Can renewable energy alone deliver environmental sustainability?

The study evaluates how effectively global energy transition efforts, from fossil fuels to renewables, are contributing to environmental sustainability. Using ecological footprint as a key indicator, the researchers demonstrate that in general, countries that have significantly increased the share of renewable energy in their mix tend to show signs of ecological improvement. This relationship, however, is neither uniform nor universally strong.

The ecological footprint metric captures the pressure human societies exert on natural systems, accounting for both resource consumption and the waste absorption capacity required to offset human activities. As such, it provides a broader view of sustainability than carbon emissions alone.

According to the study's global analysis, transitioning to renewables does reduce this footprint, suggesting that cleaner energy contributes positively toward environmental goals. However, the magnitude of this effect is often constrained by surrounding economic factors that act as systemic barriers. This signals that energy transition alone is insufficient as a stand-alone strategy for sustainability, especially when larger structural dependencies remain unaddressed.

How do natural resource rents disrupt the green transition?

One of the key disruptors identified by the research is natural resource rents, the revenues governments earn from the extraction of oil, gas, coal, minerals, and other non-renewable resources. In many countries, especially those with resource-dominant economies, these rents form a significant portion of national income and public financing. This economic structure creates disincentives to move away from extractive industries, even when they are environmentally damaging.

The researchers found that in such economies, the environmental benefits typically associated with energy transition are weakened or reversed. The extractive sectors often maintain political influence and financial control that can stall renewable energy investments, undermine regulatory reforms, and perpetuate environmental harm.

This dynamic is particularly problematic in countries that are both resource-rich and developing, where public revenue is heavily reliant on commodities and institutional capacity to regulate environmental impacts is limited. In these contexts, policy signals supporting renewable energy coexist with continued investment in fossil fuel infrastructure, resulting in contradictory and ultimately ineffective sustainability outcomes.

Moreover, resource dependency also correlates with institutional inertia, governments become locked into legacy systems that resist change. The study highlights that reducing ecological footprints in these countries requires more than just scaling up renewable projects; it necessitates reconfiguring the economic model to reduce fiscal reliance on extractive rents.

Does trade openness amplify environmental pressures?

The study also raises concerns about trade openness as a counterforce to environmental sustainability. While global trade is often championed for economic growth and technology diffusion, the authors caution that increased integration into international markets can also exacerbate ecological harm.

Trade openness tends to encourage export-oriented industrialization, which is frequently associated with high energy use and carbon-intensive production methods. Even when a country adopts cleaner energy domestically, its ecological footprint may still rise due to increased demand for energy-intensive exports or imports. This disconnect challenges assumptions that clean energy automatically leads to net environmental gains in a globalized economy.

The findings suggest that in countries with high trade exposure, energy transition must be coupled with trade policy reform to avoid rebound effects. For example, exporting raw materials or manufactured goods with high embedded emissions undermines domestic sustainability efforts. Additionally, global trade logistics, shipping, warehousing, and cross-border transportation, add layers of environmental impact that can offset gains made through clean energy adoption at home.

The authors argue for rethinking international trade dynamics through an environmental lens. Trade agreements and investment frameworks should include ecological safeguards that align with domestic energy and climate strategies. Without such integration, globalization may continue to act as a structural brake on progress toward ecological sustainability.

Integrated solutions required for lasting impact

The study calls for context-sensitive policy strategies that align environmental goals with broader economic planning. Policymakers are urged to adopt integrated frameworks that consider how resource dependency and trade policy shape environmental outcomes. Energy transition, while essential, cannot deliver sustainable results unless these economic structures are also addressed.

For countries heavily reliant on natural resources, this means developing diversified revenue models that reduce dependence on extractive rents. For trade-driven economies, it requires environmental clauses in trade agreements and the development of low-impact logistics systems.