Paving the way for sustainable environment in BRICS through technological innovation, sustainable energy, and financial development: heterogenous analyses

Abstract

ABSTRACT The pervasive issue of global warming has propelled the continued empirical efforts by policymakers and research pundits geared towards finding sustainable solutions to salvaging the ecosystem. Consequently, this study evaluates the heterogenous impacts of technological innovation, sustainable energy, and financial development on environmental sustainability captured by CO2 emissions, methane emissions, and nitrous oxide emissions in the BRICS countries from 1995 to 2020. The study employs second-generation estimators comprising quantile regression (QR), augmented mean (AMG), common correlation effect group mean (CCEMG), and cross-sectional ARDL (CS-ARDL). The main findings show that among the indicators of technological innovation, high technology exports, ICT goods exports, and ICT services exports drive sustainable environment in the long run whereas environmental-related technology promotes both in the short run and long run. The moderating impacts of sustainable energy are evident through wind energy, solar energy, and hydrogen technology. Conversely, financial development measured by broad money and domestic credits to private sector hinders environmental sustainability. More so, the covariates entailing economic growth, population growth, poverty, and trade openness escalate the stock of pollutants. The empirical regularity of the main estimators is supported by outcomes of QR across the low, middle, and upper quantiles. On the policy front, the study recommends promoting initiatives that drive technology and renewable energy to enhance the sustainability of the BRICS’ environment.