Examining The Relationship Between Income Concentration And Environmental Pollution In The Context Of The STIRPAT Model: The BRICS Countries

Abstract

The impact of rising economic activity, which increases with international economic relations and globalization, on environmental degradation has been subjected to many studies in the literature. Consequently, numerous factors that have both positive and negative impacts on the environment are included in a number of research. Using a sample of BRICS nations and controlling factors for income, population, and urbanization, our study examines the impact of economic disparity on the environment. In our study using the STIRPAT model, second-generation unit root, panel cointegration, and long-run coefficient tests were applied in light of the findings from the cross-sectional dependency and homogeneity tests. The variables behave jointly over the long term, which indicates that there is a cointegration link between the variables, according to the findings of the panel cointegration test that was conducted. Long-term coefficient estimate throughout the panel’s data reveals that while CO2 emissions are increased by income disparity and per capita income, they are decreased by population. No significant relationship was found for the whole panelbetween the urbanization variable and the environment. When individual nations are taken into account, it is determined that India's income disparity causes a rise in CO2 emissions.