Economic growth, financial development, and oil price effects on GHG emissions: Insights from BRICS economies

The global concern surrounding the environmental impacts of oil price fluctuations prompts us to investigate the skewed effects of such changes on environmental contamination in BRICS economies. Utilizing a yearly time series dataset from 1991 to 2020, the study employs quantile regression techniques to discern nuanced patterns between economic factors, financial development, oil prices, and their collective impact on the environment in BRICS nations. The results, gleaned from panel data analysis across BRICS nations, unveil a notable correlation between Gross Domestic Product (GDP) growth and a persistent increase in Greenhouse Gas (GHG) emissions. Intriguingly, the study reveals a negative correlation between GHG emissions and financial development, suggesting a potential mitigating effect of financial advancements on environmental harm. Moreover, the study identifies that extremely low, greater than median and extreme high oil prices do not significantly contribute to environmental degradation.