Does Trade Openness Mitigate Environmental Degradation in BRICS Countries? An Empirical Analysis from PMG-ARDL and Panel DOLS Model Technique

The fundamental feature of the modern world is the preservation of environmental quality, as well as the restoration of renewable resources, the promotion of green and clean energy, and the advancement of sustainable development. The objective of the research is to examine the influence of trade openness on environmental mitigation in a group of BRICS nations from 1990 to 2021. This will be done by taking into account factors such as GDP per capita, financial development, energy consumption, and urbanisation. The PMG-ARDL model methodologies indicate that GDP per capita, trade openness, and urbanisation have a long-term mitigating effect on environmental quality in a panel of BRICS nations. The results suggest that in the near term, GDP per capita, financial development, energy consumption, and urbanisation have adverse effects on environmental mitigation, whereas trade openness does not have a negative impact. Moreover, the panel DOLS analysis reveals that GDP per capita, trade openness, energy consumption, and urbanisation in the BRICS nations have a substantial and negative impact on environmental quality. Nevertheless, the results obtained from the PMG-ARDL estimator and the panel DOLS indicate that there is no detrimental effect of financial development on environmental quality. These empirical results provide useful insights for several stakeholders, such as government authorities, politicians, regulators, practitioners, and researchers.