Assessing the nexus between natural resources and government effectiveness: Role of green innovation in shaping environmental sustainability of BRICS nations

Abstract

The discussion surrounding natural resources and government effectiveness in mitigating carbon emissions has garnered significant attention. However, the existing evidence on this matter remains limited. This research delves into this issue within the BRICS nations, shedding light on pivotal factors influencing the ecological landscape. Spanning the years 1995–2021, this study identifies government effectiveness, green innovation, natural resources, and economic growth as crucial determinants that significantly shape the environmental sustainability of BRICS nations. For this purpose, we employ the Method of Moments Quantile Regression (MMQR), Canay (2011) quantile regression, and AMG. Study results reveal a positive correlation between nuclear energy and CO2 emissions, signaling environmental challenges. Conversely, government effectiveness consistently correlates with reduced CO2 emissions, aligning with Sustainable Development Goal 16. The positive relationship between green technology innovation and natural resource utilization with CO2 emissions underscores the imperative for environmental considerations. On the flip side, economic growth negatively impacts CO2 emissions, suggesting potential avenues for sustainable development. These findings highlight the urgency of targeted policies, especially resource-related ones, to enhance environmental sustainability in BRICS nations. Recognizing their global impact, strategic interventions are crucial for addressing environmental challenges and fostering sustainable development.