Asymmetric Relationship Between Load Capacity Factor and Mineral Rents: Evidence from Brazil

Abstract

In recent years, transforming green resources and managing existing mineral reserves through sustainable policies have become essential for achieving an environmentally sustainable future. In this regard, countries with high biocapacity and abundant mineral reserves have attracted increasing attention, making the implementation of sustainable strategies a critical agenda. This paper examines how green energy use and mineral resource availability relate to environmental sustainability by employing advanced techniques, including the Fourier approach and artificial intelligence algorithms. The results indicate that positive changes in mineral rents do not significantly influence environmental sustainability, while negative variations are linked to worsened ecological outcomes. Moreover, green energy use contributes positively to environmental quality, whereas urbanization has a detrimental effect. The outcomes of this study underscore the necessity for policymakers to account for the nonlinear dynamics between mineral resource abundance and environmental sustainability when formulating effective policy interventions. In particular, the contribution of mineral resources to advancing clean energy transitions should be acknowledged. Promoting investments in environmentally friendly energy and restructuring urban policies toward green infrastructure and sustainable land use are also vital for strengthening environmental sustainability.