The impact of poverty on the ecological footprint in BRICS countries

Frederich Kirsten, Mduduzi Biyase and Talent Zwane
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Frederich Kirsten: College of Business and Economics, University of Johannesburg
Talent Zwane: College of Business and Economics, University of Johannesburg

Economics Working Papers from College of Business and Economics, University of Johannesburg, South Africa

Abstract: This paper investigates the relationship between poverty and ecological footprint for BRICS nations. The data for BRICS is obtained from the World Bank's world development indicators, Global Footprint Network, Worldwide Governance Indicators (WGI) and PovcalNet for the period 1996 to 2017. Panel autoregressive distributed lag (PARDL) and their corresponding preliminary cross-sectional dependence and second generations specification tests were used for the analysis of the data. The estimates from the full sample support the literature, revealing a robust long-run relationship between poverty and ecological footprint. Specifically, results demonstrate that poverty gap help to reduce environmental degradation in terms of EFP in the full sample. However, the effect of poverty on ecological footprint becomes positive when we split the sample-exclude China from the full sample. Our results are robust to various measures of ecological footprint, poverty and to alternative empirical specifications. The implication of the current upward trend of environmental degradation for some BRICS countries and the high poverty in others suggest that policy makers have a long way to go and given growth trajectory of the BRICS nations, the future of the planet could very well be in the hands of these developing nations.

Keywords: BRICS; poverty; ecological footprint; PARDL (search for similar items in EconPapers)
JEL-codes: F18 Q56 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2022, Revised 2022
New Economics Papers: this item is included in nep-cis and nep-env
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