Implications for optimal abatement path through the deployment of natural resources, human development, and energy consumption in the era of digitalization

Abstract

As the International Energy Agency expects forecasts Brazil, Russia, India, China, and South Africa (BRICS) economies to convert contamination pivots in the near future, restructuring optimal abatement path for decarbonization has become imperatively vital for the concerned administrations. To this end, the main objective of this study is to recognize the indicators that can assist BRICS economies in monitoring their atmospheric toxic expulsions. In this regard, this study estimates the role of natural resources, human capital, renewable energy use and technological innovations on environmental pollution in BRICS economies from 1990 to 2020. After verifying the possible cross-sectional dependency, this study applied a battery of second-generation panel data approaches to estimate the reliable, consistent, robust and unbiased outcomes. Estimated outcomes reveal that natural resources rent is the only indicator which degrade the environmental quality. However, technological innovations, human capital, and renewable energy significantly protect the environmental eminence in the BRICS region. Additionally, panel Dumitrescu and Hurlin causality analysis establishes a unidirectional from technological innovations and from renewable energy to ecological footprint. Conversely, it is found a bidirectional causality link exists between human capital and ecological footprint, and finally, between renewable energy and human capital. Based on these estimated findings, numerous decarbonization policies are suggested for BRICS economies.