The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 1/2024.  Publications of young authors.

Yulia D. Sokolova

research engineer at the Laboratory of the Natural Resources Policy at the Graduate School of Economics and Management, assistant and postgraduate student at the Department of Economics at the Graduate School of Economics and Management, Ural Federal University named after the first President of Russia B. N. Yeltsin, Yekaterinburg, Russia

ORCID: 0000-0002-5991-3061

THE IMPACT OF ECONOMIC ACTIVITY ON THE ENVIRONMENT: EMPIRICAL EVIDENCE FROM BRICS COUNTRIES

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Abstract

The research is devoted to the nexus between economic development and environmental pollution in the BRICS countries. Within the framework of the study, the hypothesis of the Kuznets environmental curve was not verified, but Russia and China have the greatest potential to reach the income level where economic growth is able to "take care" of the environment. Applying the advanced econometric method of Driscoll–Krayy panel data analysis, we found that GDP per capita growth, industrialization and urbanization are the factors most responsible for environmental degradation in the BRICS countries, while the inflow of foreign direct investment, developed financial sector, active integration into the global space, environmental policy and the use of alternative energy sources contribute to environmental improvement. As for the policy implications, the BRICS countries should direct their efforts to create the most favourable conditions for FDI, deepen the financial sector, intensify environmental policy and develop the alternative energy sector.

Keywords: BRICS, economic growth, environment, environmental Kuznets curve, Driscoll–Krayy.

JEL: O44, Q56, R11

EDN: WMTHDC

DOI: https://doi.org/10.52180/2073-6487_2024_1_154_176

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Manuscript submission date: 22.01.2024

For citation:

Sokolova Y.D. The impact of economic activity on the environment: empirical evidence from BRICS countries // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2024. № 1. Pp. 154-176. (In Russ.). https://doi.org/10.52180/2073-6487_2024_1_154_176 EDN: WMTHDC

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