Green technology innovations, natural gas and resource extraction strategies in BRICS: Modeling impacts on CO2 emission intensity

Abstract

The article extends beyond conventional models and indicators by initially attempting to capture the complex effects of green technological innovations and changes in natural resource extraction and natural gas production on a novel environmental quality indicator (CO, intensity, CO2ei) for the BRICS countries from 1990 to 2020. The empirical analysis for the candidate panel was conducted using robust analytical techniques, including the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical correlation regression (CCR), and seemingly unrelated regression (SUR). The results corroborated the role of green technological innovations as an effective deterrent against increasing levels of CO2ei. Still, the outcomes suggested that changes in natural gas production and natural resource extraction had escalated CO2ei in the candidate panel. The country-wise analysis reflected significant variance among the candidate panel countries. For instance. the model revealed that natural gas production abated CO2ei in China and India only, while its environmental effects remained adverse in the remaining countries. Per estimations, the unrequited extraction of natural resources facilitated the reduction of CO2ei in Brazil and Russia, but it also raised CO2ei in the rest of the BRICS countries. In addition, the causality estimation highlighted the following causal flows: i) the feedback effect from natural gas production to CO2ei; ii) one-way causality from CO2ei to green technological innovations and from natural resources extraction to CO2ei. The study offers novel and actionable policy recommendations for policymakers and theorists to steer sustainable and environmentally conscious initiatives in the BRICS countries.