Economic performance and carbon emissions: revisiting the role of tourism and energy efficiency for BRICS economies

Abstract

AbstractIncreased demands for infrastructure, water, electricity, and different natural assets have triggered land erosion, climate change, and pollution increase and deterioration in biodiversity. The purpose of this research is to look at how economic performance, tourism, renewable energy, and energy efficiency affect carbon emissions in the emerging economies of BRICS during 1990–2021. Using panel estimation approaches, the empirical outcomes validate the longer-run equilibrium connection between the components of the model. Using a nonparametric estimator, the study found that economic performance is the significant driver of higher emissions levels in the sample countries. In contrast, tourism, energy efficiency, and renewable energy substantially reduce emissions levels and improve environmental sustainability. The estimated results have been found robust, and the feedback effect is found valid between repressors and carbon emissions. This study further suggests that investment in research and development, improvement in energy-efficient tools and equipment utilization, and enhanced renewable energy output are the key policy efforts for ensuring environmental sustainability.