The influence of financial openness, trade openness, and energy intensity on ecological footprint: revisiting the environmental Kuznets curve hypothesis for BRICS countries

Abstract

This study aims to examine the impact of economic growth, financial openness, trade openness, and energy intensity on the ecological footprint of BRICS countries for the period 1996-2016 in the framework of the environmental Kuznets curve (EKC). In the research phases, the effects of financial openness and trade openness on ecological footprint were examined both individually and as a whole using three models. The results indicate that the EKC hypothesis is not valid in all BRICS countries. Specifically, the individual results demonstrate that the EKC model using financial openness is valid only for India, while the EKC model using trade openness is valid both for India and South Africa. Furthermore, financial openness has reduced environmental pollution in India and South Africa. Trade openness has reduced environmental pollution in China and India, while it has increased in South Africa. Lastly, energy intensity has increased environmental pollution in all countries except Russia for both models. Overall, policy-makers should develop policies to reduce energy intensity in BRICS countries.