Impact of Energy consumption and Economic policy uncertainty onEcological footprint: Evidence from BRICS countries
Impact of Energy consumption and Economic policy uncertainty onEcological footprint: Evidence from BRICS countries.
Author: Oghenefejiro Arek-Bawa
Degree: Master of Commerce (Economics/Economic Science)
Date: 02 April 2024
Institution: University of the Witwatersrand, Johannesburg, South Africa
Advisor: Prof. Philip Adom
This thesis investigates the relationship between energy consumption, economic policy uncertainty (EPU), and the ecological footprint (EFP) in BRICS countries, focusing on Brazil, Russia, India, China, and South Africa. The study is motivated by growing global concerns about environmental quality and the energy demands required to sustain economic growth. Given the significant influence of the BRICS group on the global economy, the research provides valuable insights into the ecological impacts of energy policies in emerging economies.
The study employs advanced econometric methods, including the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, to examine both panel-level and country-specific effects. Energy consumption is disaggregated into renewable energy consumption (REC) and non-renewable energy consumption (NREC) to analyze their individual impacts on ecological outcomes. The findings reveal that overall energy consumption and non-renewable energy use increase the ecological footprint, indicating a negative environmental impact. In contrast, renewable energy consumption exhibits a positive environmental effect in China, suggesting that targeted investments in renewable energy can mitigate ecological degradation.
Furthermore, the analysis highlights the role of economic policy uncertainty, showing that EPU negatively affects ecological outcomes when considering renewable energy sources. The thesis concludes with policy recommendations emphasizing the acceleration of renewable energy adoption, increased investments, and subsidies to support sustainable energy transitions. By providing a nuanced understanding of the drivers of ecological footprint in BRICS countries, this research contributes to both academic literature and practical policymaking in the context of sustainable development.
