Interlinkages Between Financial Markets and Minerals (1990–2023): Implications for Global Energy Transitions and Environmental Sustainability

Abstract

This paper examines the nexus between financial markets (FM), mineral resources, and global energy transitions (ET) between 1990 and 2023 in the 20 leading countries exporting mineral resources, focusing on their impact on environmental sustainability. Cross-sectional ARDL, augmented mean group (AMG), and common correlated effects mean group (CCEMG) estimators are used for cross-sectional analysis of developed and developing countries. The findings suggest that mineral markets (MM) play a pivotal role in guaranteeing sustainable energy shifts, and FM negatively impacts the situation in the short and long term. Renewable energy consumption (REC), external investment, and digital governance (DGI) are developed countries' primary strategies for achieving COP-26 sustainability objectives. The findings indicate that the Digital Governance Index (DGI) and FDI have varied impacts on energy transition in the economies. Developed countries enjoy the opportunities of improved and modernised digital systems and green FDI. In contrast, developing countries must strengthen e-governance and encourage sustainable investments to support SDGs 7, 9, and 13.