Natural resource and energy efficiency in BRICS countries: Can green innovation capabilities really change the game?

Abstract

The inefficient exploitation of resources, overdependence on fossil fuels for energy production, and inappropriate waste management strategies have resulted in mounting environmental challenges that seriously threaten humanity and the planet.The United Nations urges businesses to transition from fossil fuels to sustainable practices, fostering cooperation between natural resources, the economy, and ecology to achieve SDGs. This shift is critical for emerging economies, which may experience rapid growth while heavily relying on fossil fuels. This study uses the nonparametric data envelopment analysis and directional distance function (DEA-DFF) model to examine how organizational green and technological innovation capabilities impact natural resource and renewable energy efficiency in BRICS countries from 2011 to 2021. The results indicated that green and technological innovation significantly improve resource and energy efficiency in BRICS economies, supporting the theoretical arguments given in the dynamic capabilities theory (DCT), business technology adoption model (BTAM), and natural resource-based view (NRBV). It all proposes theoretical and practical implications for similar developing nations. Overall, the results of the study are robust to different econometric models and data processing techniques.