Do international trade diversification, intellectual capital, and renewable energy transition ensure effective natural resources management in BRICST region

Abstract

Brazil, the Russian Federation, India, China, South Africa, and Turkey, collectively known as BRICST experienced rapid economic growth in recent years. A third of the world's material is mined to provide these nations' material needs. A lack of effective resource management results in the depletion of natural resources and the emergence of environmental consequences. Therefore, identifying the key drivers that stimulate effective resource management is crucial. This study draws an asymmetric association between trade diversification, intellectual capital, renewable energy transition, and material footprint in BRICST countries from 1990 to 2019. It applies Method of Moments Quantile Regression” (MMQR) to inspect the quantile-based association between variables due to possible non-normality in data. The outcome MMQR illustrates the negative and significant coefficients of trade diversification, intellectual capital, and renewable energy transition at all quantiles (0.1–0.9). It implies that trade baskets with less specialized products increases material footprint, while human capital and transforming energy resources from fossil fuels to renewable energy support sustainable resource management. Similar results are endorsed using other panel estimators and helps in formulating policies to improve progress toward SDG goals 8.4 and 12.2.