Bridging the divide: Exposing the intriguing link between international reserves and environmental status through the inverted U-shaped relationship

IF 1.2 Q3 ECONOMICS

Research in Economics Pub Date : 2025-01-27 DOI:10.1016/j.rie.2025.101041

Aissa Djedaiet , Hicham Ayad , Salim Bourchid Abdelkader

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Abstract

The BRICS countries have a significant influence on global environmental issues, ranking among the world's top polluters. Similarly, they possess the world's largest foreign exchange reserves. Nevertheless, this intriguing intertwining has not been investigated. This research gap inspired the study to examine how environmental conditions react to the accumulation of international reserves and to explore the potential existence of an inverted U-shaped relationship between 1993 and 2020. The empirical findings using Method of Moments Quantile Regression (MMQR) indicate an inverted U-shaped relationship between international reserves and environmental degradation in the BRICS countries. Initially, reserve accumulation is harmful to the environment, suggesting a prioritization of reserve accumulation over environmental sustainability. However, once a certain level is reached, reserves start to help protect the environment. Additional findings reveal that nonrenewable energy consumption, GDP, and population negatively affect the environment, whereas exports have a positive influence. The impact of FDI, however, is inconsistent and frequently lacks significance over time. Furthermore, the causality analysis supports all of the aforementioned findings.

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来源期刊

Research in Economics ECONOMICS-

CiteScore

1.40

自引率

0.00%

发文量

审稿时长

89 days

期刊介绍： Established in 1947, Research in Economics is one of the oldest general-interest economics journals in the world and the main one among those based in Italy. The purpose of the journal is to select original theoretical and empirical articles that will have high impact on the debate in the social sciences; since 1947, it has published important research contributions on a wide range of topics. A summary of our editorial policy is this: the editors make a preliminary assessment of whether the results of a paper, if correct, are worth publishing. If so one of the associate editors reviews the paper: from the reviewer we expect to learn if the paper is understandable and coherent and - within reasonable bounds - the results are correct. We believe that long lags in publication and multiple demands for revision simply slow scientific progress. Our goal is to provide you a definitive answer within one month of submission. We give the editors one week to judge the overall contribution and if acceptable send your paper to an associate editor. We expect the associate editor to provide a more detailed evaluation within three weeks so that the editors can make a final decision before the month expires. In the (rare) case of a revision we allow four months and in the case of conditional acceptance we allow two months to submit the final version. In both cases we expect a cover letter explaining how you met the requirements. For conditional acceptance the editors will verify that the requirements were met. In the case of revision the original associate editor will do so. If the revision cannot be at least conditionally accepted it is rejected: there is no second revision.