The Impact of Income Inequality, Renewable Energy Consumption, Non-Renewable Energy Consumption and Per Capita Income on Poverty: Evidence from BRICS Economies

Abstract

The main purpose of this study is to investigate the role of income inequality, per capita renewable and per capita non-renewable energy consumption, per capita income on poverty reduction in BRICS (Brazil, Russia, India, China, South Africa) countries over the period between 1991–2019. This study used second-generation panel data methodologies taking into account cross-dependence between countries, which gives more accurate results. The outcomes of the panel ARDL unveiled that while an increase in income inequality and per capita non-renewable energy consumption increases poverty, an increase in growth and per capita renewable energy consumption decreases poverty. Based on the findings, policymakers should focus their efforts on developing an appropriate energy strategy that highlights the necessity of a renewable energy-driven economy powered by energy-saving technologies.

Testing the Dynamic Affiliation among Financial inclusion, Energy Poverty, Environmental Degradation and Economic Development in the Selected African countries: Evidence of Panel Data Analysis

“…The study also shows that, depending on a nation's economy, there are different country-level relationships between these variables and CO2 emissions. Barak (2022) examined the effects of per capita income, per capita energy consumption-both renewable and non-renewable-and income inequality on the reduction of poverty in the BRICS (Brazil, Russia, India, China, and South Africa) nations between 1991 and 2019. More accurate results are obtained by using second-generation panel data approaches that account for cross-dependence between nations.…”