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Impact of stock market, renewable energy consumption and urbanization on environmental degradation: new evidence from BRICS countries.

Authors :
Younis, Ijaz
Naz, Aziza
Shah, Syed Ahsan Ali
Nadeem, Muhammad
Longsheng, Cheng
Source :
Environmental Science & Pollution Research; Jun2021, Vol. 28 Issue 24, p31549-31565, 17p
Publication Year :
2021

Abstract

This study examines links between Morgan and Stanley capital Investment (MSCI), foreign direct investment (FDI), renewable energy, urbanization, and trade openness on environmental degradation in (Brazil, Russia, India, China, South Africa) BRICS countries. In this study, generalized method of moment (GMM) estimation is applied on a data set ranging from 1993 to 2018. Results illustrate that stock market index price (MSCI) has negative relationship on CO<subscript>2</subscript> emissions in India, China, Russia, and South Africa and has positive relationship in Brazil. One possible reason for this is strong environmental regulations and their enforcement by Brazilian government. The study also finds that trade openness, FDI, and urbanization have a significant positive relationship on environmental degradation. The impact of stock market development on environmental degradation varies among BRICS countries. Our outcomes have significant policy implications. For example, the policy makers have to initiate effective strategies to promote the renewable energy sources to meet the increasing demand for energy by replacing the use of conventional energy such as coal, gas, and oil. This will help to reduce the CO<subscript>2</subscript> emissions from fossil fuel and ensure sustainable stock market development in the BRICS nations. BRICS countries who have taken the initiative and formulated policies for businesses to conserve the environment play a positive role compared to those who do not. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
09441344
Volume :
28
Issue :
24
Database :
Complementary Index
Journal :
Environmental Science & Pollution Research
Publication Type :
Academic Journal
Accession number :
151124417
Full Text :
https://doi.org/10.1007/s11356-021-12731-1