Natural Resource Management and Forest Area Dynamics: A Panel-ARDL Assessment of Environmental Quality in BRICS Nations

Abstract

This study investigates the impact of natural resource management, forest area, and air & water pollution on carbon dioxide emissions (LnCO₂) in BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2023. It is among the first to comprehensively analyze the interactions between natural resources, forest area, and environmental quality in these nations using advanced panel data techniques. Employing the PMG-ARDL (Pooled Mean Group-Autoregressive Distributed Lag) model, the research examines both short- and long-term dynamics. To address cross-sectional dependence, panel unit root tests (CIPS and CADF) and co-integration techniques (Kao and Johansen) were applied, ensuring robust and reliable findings. Results reveal cross-sectional dependence and mixed stationarity properties among the variables, alongside evidence of a stable, long-term co-integrated relationship. In the long term, natural resource management and forest area significantly affect LnCO₂, with decreasing resource rents and shrinking forest areas linked to higher emissions. In contrast, short-term findings show that natural resource management, forest area, and pollution mitigation collectively reduce LnCO₂, highlighting their role in promoting sustainability. The findings offer robust policy implications for achieving sustainable development goals (SDGs), particularly those related to climate action and responsible resource consumption, thereby filling a crucial empirical gap in regional and global environmental governance discourse.