Racing towards zero carbon: Unraveling the interplay between natural resource rents, green innovation, geopolitical risk and environmental pollution in BRICS countries

Abstract

This study explores the intricate interplay between natural resource rents, green innovation, geopolitical risk, and environmental pollution, with a specific focus on the BRICS economies. Utilizing annual data spanning from 1990 to 2018 and employing the System GMM estimate method, the research uncovers both direct and indirect relationships among these variables in the context of rapid globalization, climatic challenges, and global conflicts. The empirical results underscore the pivotal role of green technology innovation in moderating the impact of geopolitical risks on CO2 emissions. While geopolitical risk directly augments emissions, the combined influence of green technology innovation and geopolitical risk on CO2 emissions is found to be negative. Furthermore, the study reveals that green innovation can counterbalance the environmental repercussions of natural resource rents, emphasizing the importance of transitioning towards cleaner and renewable energy sources. The research also suggests that economic growth, when coupled with green technological advancements, can pave the way for environmental sustainability in the BRICS nations. The findings advocate for pro-growth policies, bolstered research and development in eco-friendly technologies, and diplomatic endeavors to mitigate geopolitical risks, all aimed at achieving carbon neutrality by 2050.