Do economic growth and globalization are drivers of sustainable resources management? New insights from BRICS countries

Abstract

This research explores the nexuses among ecological footprint, financialization and globalization within the BRICS nations, placing a distinct emphasis on the Pollution Heaven Hypothesis. The data span cover from 1985 to 2020, with yearly observations. Utilizing a quantitative approach, this research employs the 2 Stage Least Square (2SLS) technique to tackle the issue of endogeneity and confirm causal relationships. The research takes the ecological footprint as the dependent variable, which stands as an indicator for environmental degradation and resource usage. The independent variables include financialization factors like foreign direct investment, financial institutions, and financial markets, along with globalization aspects like economic, social, and political globalization. This research also takes into account variables associated with environmental degradation, specifically renewable energy and human capital. By utilizing the 2SLS technique, the research seeks to produce reliable and solid assumptions regarding the Pollution Heaven Hypothesis in the context of the BRICS nations. The results bear significant relevance for environmental policy makers and interested parties in their pursuit of maintaining a balance between economic expansion and environmental preservation. This research, through a comprehensive examination of a broad spectrum of variables across economic, social, and political scopes, contribute a multifaceted understanding of the factors impacting the ecological footprint in the BRICS nations.