Greening the BRICS: How Green Innovation Mitigates Ecological Footprints in Energy-Hungry Economies

Abstract

The escalating energy consumption seen in the BRICS countries, namely Brazil, Russia, India, China, and South Africa, presents a substantial environmental problem, resulting in the depletion of resources, amplified carbon emissions, and endangering the well-being of ecological systems. The study examines the potential of green innovation to alleviate these adverse effects. By combining green technology with strong institutions and responsible energy consumption, we argue that the BRICS nations can significantly reduce their ecological footprint. This research, encompassing data from 1995 to 2022, employs Driscoll–Kraay and panel quantile regression to analyze the complex interplay of institutional quality, energy consumption, green innovation, and ecological footprints across the BRICS countries. Our findings reveal that green innovation is crucial in mitigating the ecological footprint, particularly when combined with resilient institutional quality and controlled energy use. Conversely, factors like high energy consumption, natural resource rent, and urbanization contribute to an increased ecological footprint. Notably, the study emphasizes the critical role of both institutional quality and renewable energy consumption in effectively reducing the ecological burden within the BRICS nations. These findings suggest that prioritizing investments in green technology and institutional development, even amidst high energy demands, represents a viable strategy for the BRICS nations to achieve sustainable growth and environmental responsibility.