Investigating the role of natural resources in BRICS nations: A Path towards sustainable development

Abstract

Natural resource management is crucial in the current scenario from the viewpoint of achieving sustainable development. Emerging economies such as BRICS are rich in natural resources and hence, resource allocation and extraction can impact environmental sustainability. Against this backdrop, we examine the relationship between natural resources rent, renewable energy consumption, agriculture production, human capital index, and carbon emissions for BRICS nations from 1992 to 2019 under the framework of the environmental Kuznets curve and Pollution haven/halo hypothesis. The relationship between the variables is investigated using Driscoll-Kraay standard errors, Feasible Generalised Least Square, and Panel quantile regression approaches. Our results indicate a favourable relationship between natural resources rent, renewable energy consumption, human capital index, and carbon emissions. Whereas, agriculture production has an unfavourable impact on carbon emissions in BRICS nations. It is recommended to use the resources sustainably, invest in clean technologies in industrial practices, expand investment in renewable energy, and introduce sustainable farming practices and awareness programmes for the individuals' skill development.