Unpacking the Impact of Financialization and Globalization on Environmental Degradation in BRICS Economies
Yanjie Gao,
Hang Chen,
Muhammad Zubair Tauni,
Ibrahim Alnafrah and
Jiaqi Yu
Additional contact information
Yanjie Gao: Anhui University [Hefei]
Hang Chen: NYU - New York University [New York] - NYU - NYU System
Muhammad Zubair Tauni: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Jiaqi Yu: Zhongnan University of Economics and Law [China]
Post-Print from HAL
Abstract:
Environmental degradation is a pressing global concern, necessitating a comprehensive understanding of its determinants. This research uses the pollution haven hypothesis to explore the impact of financialization and globalization on environmental degradation in BRICS economies. The study offers evidence-based perspectives on the interplay between financialization, globalization, and the ecological footprint by utilizing yearly data from 1985 to 2020 and adopting the pooled least square and fixed effect estimation methods. Results indicate that Foreign Direct Investment (FDI) may exacerbate environmental deterioration by influencing the three facets of globalization: economic, social, and political. Moreover, the study emphasizes that the financial market could aid in lessening the ecological footprint in BRICS economies. Furthermore, a heightened utilization of renewable energy sources can aid in mitigating environmental deterioration. However, elevated levels of human capital could potentially lead to augmented economic activities and resource usage, thereby increasing the ecological footprint. These results add to the knowledge of environmental degradation and deliver critical insights for policy formulators in BRICS countries. The study underlines the necessity for effective environmental rules and strategies to counterbalance the detrimental effects of financialization and globalization on the environment. It also points out the significance of sustainable practices and global collaboration in tackling environmental challenges. \textcopyright 2023 Elsevier Ltd
Keywords: alternative energy; Association of southeast asian nation (BRICS); Association of Southeast Asian Nations; Association of southeast asian nations (BRICS); Brazil; China; Deterioration; ecological footprint; Ecological footprint; economic activity; Economics; environmental degradation; Environmental deterioration; environmental economics; Evidence-based; financial system; foreign direct investment; Globalisation; globalization; human capital; India; Investments; Least squares approximations; Pollution haven hypothesis; Pressung; Renewable energy resources; Research use; Resource management; resource use; Resources management; Russian Federation; South Africa; Sustainable development (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Published in Resources Policy, 2024, 88, ⟨10.1016/j.resourpol.2023.104497⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Unpacking the impact of financialization and globalization on environmental degradation in BRICS economies (2024) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04432402
DOI: 10.1016/j.resourpol.2023.104497
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().