The role of natural resources, and economic development in evaluating the environmental effects of biofuel and waste energy generation in the group of BRICS

Abstract

The green energy sources such as biomass conversions and waste energy have shown great potential in environmental management. This article aims to examine the changes brought about by the production of biofuel and the management of solid fossil waste over the past forty years, and to analyze the significant roles that natural resources and economic factors have played in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2021. To achieve accurate and feasible results, second-generation econometric methodologies were applied. The Driscoll-Kraay standard errors (DKSE) approach revealed a significant negative relationship between biofuel production and environmental damage through waste management. Thus, an increase in biofuel production is associated with a reduction in environmental degradation in the region. Furthermore, the results indicate that environmental degradation (ED), the dependent variable, is still positively correlated with natural resources, urbanization, trade, and economic growth. As the financial sector struggles to address environmental threats, stringent monitoring of financial control measures and provisions for environmental issues is necessary. To achieve sustainable development, BRICS member countries need to address the issues of natural resource exhaustion and over-exploitation. The findings of this research suggest policy support for sustainable redevelopment, which should be goal-oriented and backed by the central authorities of the respective countries.