Assessing the Environmental Sustainability Corridor for BRICS Nations by Integrating Three SDGs, ‘Biocapacity’ and ‘Ecological Footprint’

Abstract

The present study makes an attempt to analyse the co-integrating relation between ‘ecological footprint’ on one hand and GDP, trade openness, forest area and biocapacity on the other for the period 1992–2015 for five BRICS economies with the objective of ascertaining whether the rapid growth achieved by the BRICS is along a ‘sustainable’ path. Further, the study also tries to lookout for signs of ‘convergence’ of ‘ecological footprint’ amongst all BRICS economies. The methodology employed includes ARDL Co-integration Model, TY Causality and Beta Convergence Models. The results showed existence of long run co-integration amongst four BRICS nations (except for India where no co-integration was proved) with fast speed of adjustment towards long run equilibrium. Further, short-run causality was seen moving from ‘GDP’ and ‘forest area’ towards ‘ecological footprint’ in three of the five BRICS nations, while variable ‘trade’ was not seen causing ‘ecological footprint’. ‘Beta convergence’ was also proved for ‘ecological footprint’ amongst all BRICS nations. These results thus provide a clear indication as to which variables need to be targeted to achieve a ‘sustainable’ growth. The results also reveal the pace of long-term adjustment as shown by ECM(1) term, which would enable policymakers to plan their action for fulfilment of the objective of tackling ‘environmental degradation’ in BRICS economies. Also, convergence of ‘ecological footprint’ across BRICS indicates that similar policies to tackle environmental degradation could be framed for BRICS at their group meetings.