Abstract
This study investigates the pollution halo and natural resources blessing phenomenon in Brazil, Russia, India, China, and South Africa (BRICS) economies at the disaggregated level over 1995–2018. The study applies panel techniques useful in endogeneity, autocorrelation, heteroscedasticity, and crossectional dependence. Our study's results partially supported the natural resources curse phenomena and resource blessing for BRICS countries. The empirical results further substantiated that total natural resource rents help decrease CO2 emissions, while the mineral, forest, and oil rents substantially increase CO2 emissions of the BRICS economies. The causality results further indicated that fossil fuels, economic growth, and CO2 emissions have feedback effects. Similarly, mineral resources have bidirectional causal impacts on CO2 emissions and fossil fuel consumption. The unilateral causal linkages are also found to forest resources from all the chosen variables. Finally, a significant causal relationship originates from GDP, fossil fuel to natural resource rents, and the BRICS economies' oil rents. Since the study outcomes are unique, it has reliable policies for the theory and practice of the BRICS economies.
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Abbreviations
- AMG:
-
Augmented mean group
- ARDL:
-
Autoregressive distributed lags
- ASEAN:
-
The Association of Southeast Asian Nations
- BRICS:
-
Brazil, Russia, India, China, and South Africa
- CADF:
-
Crossectional augmented ADF
- CD:
-
Crossectional dependent
- CIPS:
-
Crossectional Im, Pesaran, & Shin
- DK:
-
Driscoll & Kraay
- DOLS:
-
Dynamic OLS
- D-H:
-
Dumitrescu & Hurlin test
- EU:
-
European Union
- FDI:
-
Foreign direct investment
- FF:
-
Fossil fuel
- FMOLS:
-
Fully modified OLS
- FOR:
-
Forest rents
- G7:
-
Group of seven countries
- GDP:
-
Gross domestic product
- GMM:
-
Generalized method of moment
- GVR:
-
Group mean variance ratio
- MENA:
-
Middle East & North Africa
- MIN:
-
Minerals rents
- MINT:
-
Mexico, Indonesia, Nigeria, and Turkey
- NR:
-
Total natural resources rents
- OECD:
-
Organization of Economic Cooperation and Organization
- OIL:
-
Oil rents
- PHH:
-
Pollution haven hypothesis
- PVR:
-
Panel variance ratio
- VAR:
-
Vector autoregressive
- VR:
-
Variance ratio
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Sicen, L., Khan, A. & Kakar, A. The Role of Disaggregated Level Natural Resources Rents in Economic Growth and Environmental Degradation of BRICS Economies. Biophys Econ Sust 7, 7 (2022). https://doi.org/10.1007/s41247-022-00102-4
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DOI: https://doi.org/10.1007/s41247-022-00102-4