Analysis of income inequality and environmental pollution in BRICS using fresh asymmetric approach

Abstract

With rapid economic growth, BRICS is facing enormous burdens of carbon emission and severe issues of income inequality. However, behind this economic success, the BRICS economies also face few thoughtful challenges to improve environmental quality by catching up the sustainable development goals. Consequently, the existing empirical research is concerned with the dynamic links between income inequality and CO2 emissions by using the novel nonlinear ARDL approach, but small attention has been paid to the BRICS in literature. Therefore, we observed that a negative and positive change in income inequality has positive effect on CO2 emissions in Russia and South Africa in the long run, although a positive change in income inequality has positive effects on CO2 emissions in Brazil, Russia, and China, while a negative change in income inequality has negative effect on CO2 emissions in India, Brazil, and Russia in the short run. Hence, the findings value specific attention from policymakers in BRICS economies.