Impact of urbanization, industrialization, electrification and renewable energy on the environment in BRICS: fresh evidence from novel CS-ARDL model

Abstract

Increased demand for water, energy, infrastructure, and other natural resources has resulted from an increase in anthropocentric activities recently, which has led to climate change, land erosion, pollution growth, and a decline in biodiversity. During the period 1972-2021, the aim of this study is how industrialization, urbanization, and renewable energy affect the environment of five industrialized economies-Brazil, Russia, India, China, and South Africa (BRICS)-implemented. Concerning slope heterogeneity, cross-sectional dependence (CSD), and a mixture of I (0) and I (1) variables, this paper used a fresh panel technique known as cross-sectionally augmented autoregressive distributive lag (CS-ARDL). When it comes to protecting water, land, and forest resources while also lowering carbon emissions, the estimate of energy, urbanization, electrification, and industrialization is favorably substantial. The findings show that rising industrialization, urbanization, income, and electrification can stimulate environmental degradation. On the other hand, renewable energy in industrialized economies may significantly lessen the environmental degradation in the BRICS region. In the BRICS region recently, urbanization is booming, all countries are expanding industrial zones, and consumption of electricity is skyrocketing. So, this research is very important in the BRICS context. The research also applied an augmented mean group (AMG) to get the impact of all variables on the environment in all BRICS countries. Because of their different economic sizes, public policy, industrial policy, population policy, immigration, and trade policy, the magnitude of impacts and signs of impacts are different. There is some evidence to suggest that renewables may be a panacea for BRICS energy security and environmental deterioration; consequently, boosting alternative energy sources, green urbanization, and environmentally-friendly urbanization should be a part of all governments' energy and environmental plans worldwide. Hence, these countries' decision-makers should re-review their population, energy, urbanization, and industrial policies to adopt a sustainable environment.

Keywords: BRICS; CS-ARDL; Cross-sectional dependence; Industrialization; STIRPAT; Urbanization.