Quantifying the Economic Benefits of Improved Environmental Quality in BRICS Economies
摘要
Although enhanced environmental quality postures challenges for traditional models of economic growth, also provides various opportunities for sustainable growth through numerous factors. Using a comprehensive analysis of environmental indicators and economic indicators, this chapter investigates the relationship between environmental quality and economic performance, including trade openness, government expenditure, and foreign investment in BRICSBRICS economies from 1990 to 2022. By applying numerous econometric techniques such as cross-sectional dependence, stationarity tests and cointegration test, we found the existence of cross dependency, stationarity, and cointegration between the variables across these economies. Furthermore, the findings of Common Correlated Effects Mean Group (CCEMG) estimator reveal that an improvement in environmental quality would also benefit economic growth BRICS economies. Furthermore, trade openness, government expenditure, and FDIFDI positively impact the economic growth, whereas natural resourcesNatural resources negatively affect economic growth BRICS economies. Based on these findings, the chapter recommends that BRICS policymakers focus on environmentally sustainable economic policies to reduce emissionsEmission and encourage investments in green technology and renewable energyEnergy efficiency. Given the negative impact of natural resource reliance, an emphasis on research and development for sustainable resource management is advised. These strategies aim to balance economic growth with environmental sustainabilitySustainability in the region.