Exploring the nexus between environment quality, economic development and industrialization in BRICS nations: the role of technological innovation and income inequality

From the last few decades, the issue of sustainability of the growth process has become the prime objective for most economies. The quality of the environment contributes significantly to achieving the objective of sustainability of the growth process. Therefore, in recent years, the policy of world economies increases its emphasis on growth, prosperity, and opportunities for all with a clean environment. Keeping in this mind, in the present paper, we examined the impact of income, technological innovation, income inequality, and industrialization on the environment quality in Brazil, Russia, India, China, and South Africa (BRICS) during the period 1996-2016. The results display cross-sectional dependency within the panel of BRICS nations. Westerlund's cointegration test verifies a long-run relationship between the concerned variables. The dynamic ordinary least square method (DOLS) exhibits that technological innovation has negative while industrialization has a positive impact on the degradation of environmental quality. The results support the existence of the environment Kuznets curve (EKC) to per capita gross domestic product (GDP). Additionally, the paper evaluates the causal link between the variables by using the Dumitrescu-Hurlin panel causality test, and the outcomes support the existence of feedback hypothesis between environmental quality and GDP per capita, and between environmental quality and income inequality. Based on the findings, innovation-driven industrialization and development with equitable distribution of income can help these economies to attain the objective of sustainability of the growth process.