ICT Trade and Energy Transition in the BRICS Economies

Abstract

This study investigates how the boost in trade of Information and Communications Technology (ICT) goods influences energy transition and carbon dioxide emission in the BRICS bloc over the period 2000–2017. The long-term impact of ICT trade on renewable energy demand and CO2 emissions is examined using the dynamic ordinary least squares (DOLS) approach. The findings from the econometric analysis suggest that increasing trade of ICT products promotes the demand for renewable energy and mitigates environmental pollution, thus supporting the clean energy agenda of the BRICS countries. We also note that FDI significantly reduces CO2 emissions, but the impact on the use of renewable energy is negligible. Economic growth contrastingly aggravates environmental pollution in the bloc. The findings provide significant policy recommendations for environmental sustainability in the BRICS economies.