A path to carbon neutrality: Exploring the impact of natural resource use on CO ₂ emissions and load capacity factor in BICS

Environmental sustainability and human well-being are negatively impacted by the rising carbon dioxide (CO ₂ ) emissions and the overuse of natural resources (NRs) which are crucial to our day-to-day lives, yet their scarcity requires proper stewardship to stop depletion. The above phenomena have caused atmospheric degradation in numerous locations, resulting in forest devastation, air and water pollution, and soil erosion. Furthermore, utilizing the load capacity factor (LCF) as a measure of ecological excellence encompasses considering ecological issues on both the supply and demand aspects. This study examines how Brazil, India, China, and South Africa (BICS) environmental quality (e.g. LCF and CO ₂ emissions) have been impacted by the depletion of NR between 1970 and 2021, taking into account the effects of total primary energy (TPE), urbanization (URB), and economic growth (EG). The research used an advanced econometric methodology known as the pooled mean group (PMG) technique to estimate short- and long-term effects. This approach accommodates variations in slope parameters among nations. The findings show that NR abundance considerably expands environmental quality in the short run. Conversely, NR increases pollution in the long run. Moreover, TPE, URB, and EG also degrade the quality of the atmosphere in the BICS countries. According to the outcmes, the short-run EG impact is larger than long-run impact supports the Environmental Kuznets Curve theory in BICS. The study's findings assist in formulating policy suggestions aimed at promoting sustainable development in BICS economies.