Unpacking the environmental quality through the effects of natural resources, renewable energy consumption, banking development and industrial value addition: An empirical evidence from BRICS countries

Bashir MA 1 , Qing L 2 , Dewil R 3 , Xi Z 4 , Razi U 5 , Jingting L 6

Affiliations 

  • 1 Guangdong Institute for International Strategies, Guangdong University of Foreign Studies, Guangzhou, Guangdong, PR China; Huangpu Institute, Guangdong University of Foreign Studies, Guangzhou, Guangdong, PR China. Electronic address: [email protected]
  • 2 Guangdong Institute for International Strategies, Guangdong University of Foreign Studies, Guangzhou, Guangdong, PR China; Huangpu Institute, Guangdong University of Foreign Studies, Guangzhou, Guangdong, PR China. Electronic address: [email protected]
  • 3 KU Leuven, Department of Chemical Engineering, Process and Environmental Technology Lab, J. De Nayerlaan 5, Sint-Katelijne, Waver, 2860, Belgium. Electronic address: [email protected]
  • 4 KU Leuven, Department of Chemical Engineering, Process and Environmental Technology Lab, J. De Nayerlaan 5, Sint-Katelijne, Waver, 2860, Belgium. Electronic address: [email protected]
  • 5 Department of Economics and Finance, Sunway Business School, Sunway University, Subang Jaya, Malaysia; Faculty of Management Scieces, Department of Business Administration, ILMA University, Karachi, Pakistan. Electronic address: [email protected]
  • 6 College of Economics, Shenzhen University, Shenzhen, Guangdong, PR China. Electronic address: [email protected]
J Environ Manage, 2024 Sep;367:122058.
PMID: 39106799 DOI: 10.1016/j.jenvman.2024.122058

Abstract

This study explores the association between natural resources rent, industrial value addition, banking development, renewable energy consumption, total reserves and environmental quality in the dynamic context of BRICS nations from 1995 to 2019. BRICS economies are responsible for global greenhouse gas emissions and confront pressing environmental challenges, including biodiversity loss and pollution. For the dependent variable, the environmental quality, the study constructed a composite index using PCA for all environmental indicators where interdependencies among variables are prevalent. Besides this, the study incorporates two interaction terms to determine the indirect influence of natural resource rent and banking development on environmental quality through the mediating role of industrial value addition. By applying the CS-ARDL technique, the outcomes of the study reveal that natural resources rent, industrial value addition, and total reserves positively influence ENQ, indicating the adverse consequences of industrial sectors on environmental quality and continued environmental degradation due to resource-intensive industrial production, underscoring the urgency of sustainable resource management. In contrast, banking development and renewable energy consumption negatively influence ENQ, signifying the positive role of developed banking sectors in supporting eco-friendly projects and enhancing environmental quality. This study offers valuable insights for policy interventions to foster a more sustainable future.

* Title and MeSH Headings from MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine.

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