Green development in BRICS: unraveling the effects of environmental technology, R&D spending, and green investment in the context of COP21.

Abstract

The BRICS countries are renowned for their rapidly developing economies and growing populations. However, the environmental challenges associated with their economic growth have raised concerns about sustainability and the need for green growth strategies. In recent times, empirics have started to analyze the determinants of green growth, but very few have focused on environmental technological capital, R&D, and green investment. This study examines the impact of environmental technological capital, R&D, and green investment on green growth in BRICS economies from 1995 to 2020 using a panel ARDL model. The study found that green investment, environmental technology, and R&D positively facilitate green growth in the BRICS economies in the long run. The long-run country-wise estimate of green investment is positively significant in Brazil and Russia. On the other side, the estimated coefficient of environmental technology is positive in Brazil, India, and China. However, the estimated coefficient of R&D is positive in China only. In the short run, the results are a mix, whether group-wise or country-wise. Based on the results, the study will recommend policy suggestions for green R&D, development of environmental technology, and green investment that help in enhancing green growth.