Role of Natural Resources Utilization Efficiency in Achieving Green Economic

Role of Natural Resources Utilization Efficiency in Achieving Green Economic Recovery: Evidence from BRICS Countries
Authors: Linhai Zhao & Ehsan Rasoulinezhad
Journal: Resources Policy
Volume: Volume 80
Published: January 2023

This study examines how natural resource utilization efficiency influences green economic growth in BRICS countries (Brazil, Russia, India, China, and South Africa) from 2000 to 2020. Using panel data and resource activity coefficients, the analysis confirms that efficient use of natural resources accelerates green economic growth. A uni-directional causal relationship from resource utilization efficiency to green growth is also established.

The study highlights that promoting green foreign direct investment (FDI), green financing, and implementing the 3Rs principle (Reduce, Reuse, Recycle) can enhance sustainable development. The findings support the Halo Pollution Hypothesis (HPH), suggesting that efficient resource use can mitigate environmental impacts while supporting economic growth.

The paper emphasizes the post-COVID economic recovery context, noting that BRICS economies, particularly China, India, and Russia, must align growth strategies with sustainable development. Green recovery strategies are critical as BRICS nations rebound from pandemic-induced economic slowdowns while contributing significantly to global CO2 emissions.

Policy recommendations include investing in green technologies, adopting green financing mechanisms, and ensuring efficient resource management. Future research may expand to examine sectoral impacts of resource utilization and the integration of additional environmental and economic factors in post-pandemic green growth strategies.