Sustainable development in BRICS economies: Linking digitalization, higher education, and energy efficiency under the N-shaped Environmental Kuznets Curve

From emissions to solutions: The role of green energy, environmental policy stringency, and political stability in achieving BRICS' carbon neutrality goals.

Can technological innovation, foreign direct investment and natural resources ease some burden for the BRICS economies within current industrial era?

PurposeThe purpose of this study is to examine how renewable energy consumption moderates the relationship between inequality and carbon dioxide (CO2) emissions for Brazil, Russia, India, China and South Africa (BRICS). The nexus between energy use and geopolitical tensions has also been explored.Design/methodology/approachThis study has used distinctive data sets from 1990 to 2018 to explore the interconnections on emission, energy use, inequality and geopolitics. To do away with the difficulties related to heterogeneity and cross-sectional dependence (CD), this paper uses recent estimation methods that are robust to panel heterogeneity and CD.FindingsThe results of the panel augmented mean group (AMG) estimation and common correlated effects mean group (CCEMG) estimation verify the environmental Kuznets curve. The findings show that a 1% rise in Gini inequality leads to a 0.24% rise in the CO2 emission (AMG) method and a 0.17% rise in emissions CCEMG (method). As far as the moderating impact of renewable energy upon Gini measure of inequality is concerned, it is −0.10 AMG and CCEMG methods of estimation, respectively. However, the moderating impact of renewable energy on the geopolitical index leads to a mitigating impact on CO2 emissions, 0.55% decline in AMG method.Originality/valueThis research makes a distinctive contribution by investigating for the first time to the best of the authors’ knowledge the main pillars of sustainable ecological development in the context of the BRICS nations.

In the current era, economic growth is inevitable for global prosperity but achieving sustainable economic development is one of the significant challenges for the developing world. The present study explores the impacts of foreign direct investment, energy use, and technological innovations on the economic growth and environmental quality of BRICS countries for the period 1990–2018. We used the augmented mean group (AMG), the common correlated effects mean group estimator (CCEMG), and several other modern-day empirical techniques to analyze data. The findings show that foreign direct investment increases economic growth but harms the environmental sustainability of BRICS countries. Moreover, we have seen that energy use is directly proportional to economic growth and CO2 emissions. This confirms that energy use is one of the factors which harms the environmental quality in BRICS economies. Likewise, economic growth increases CO2 emissions. On the other hand, technology innovation has a direct relationship with economic growth but an inverse relationship with CO2 emissions as it improves the environmental sustainability of the BRICS region. This research adds to the existing literature by exploring the interplay between FDI, innovation, energy use, economic growth, and environmental outcomes in the context of major emerging economies. The study’s findings provide empirical evidence on the role of these factors in shaping the environmental outcomes in the BRICS economies, and they have implications for policymakers and stakeholders in addressing environmental challenges such as global warming and climate change.

Exploring the impact of social capital, institutional quality and political stability on environmental sustainability: New insights from NARDL-PMG

Over the last few decades, environmental deterioration has accelerated significantly. Environmental degradation has been a subject of research across the world because of its impact on billions of people. However, there has been no international agreement on lowering the utilization of energy and CO2 emissions (CO2), while demand for fossil fuels grows in emerging economies. On the other hand, the recent COP26 summit brought all parties together to accelerate action toward reaching the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Although previous research shows that international trade promotes positive socioeconomic outcomes, other experts argue that it contributes to natural resource shortages and ecological deterioration. Thus, the current research considers the effect of international trade, renewable energy use and technological innovation on consumption-based carbon emissions (CCO2), coupled with the role of financial development and economic growth in the BRICS economies between 1990 and 2018. Moreover, this research utilizes the common correlated effects mean group (CCEMG), augmented mean group (AMG) and Dumitrescu and Hurlin (2012) causality methods to assess these interrelationships. The study findings reveal that renewable energy use, exports and technological innovation mitigate CCO2, whereas economic growth and imports trigger CCO2 in the BRICS economies. The panel causality outcomes also reveal that all the variables except financial development can predict CCO2 emissions. Based on the study findings, we recommend the adoption of policies, regulations and the development of legislative frameworks that promote technological innovation and the shift toward sustainable energy.

ABSTRACTIn recent decades, rapid development in emerging economies, particularly within the BRICS bloc, has intensified climate challenges, threatening environmental sustainability. Green energy, technological innovation, and carbon pricing strategies have emerged as key tools for mitigating these impacts while promoting green economic growth, aligning with international goals such as the 2030 SDGs and the pledge for carbon neutrality by 2060. However, balancing socio‐economic growth with environmental sustainability remains a significant challenge for BRICS countries. This study investigates the impact of green energy, green innovation, technological diffusion, green finance, economic growth, and natural resource rents on CO2 emissions in BRICS economies from 1995 to 2022. The research employs advanced panel data techniques, specifically the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) models, to account for cross‐sectional dependence and heterogeneity. The empirical results show that green energy, green innovation, and green finance all have a significant negative impact on CO2 emissions, contributing to emission reductions. In contrast, economic growth and technological diffusion are positively associated with CO2 emissions, indicating that higher economic growth and technological diffusion lead to an increase in emissions. The Dumitrescu and Hurlin panel causality tests reveal bidirectional causal relationships, suggesting that not only do these factors influence emissions, but emissions also impact the advancement of green technologies and economic growth. Based on these findings, the study recommends policy actions to support SDG targets, particularly SDG 7, SDG 8, SDG 9, and SDG 13, through the promotion of green energy, innovation, R&D, and circular economy practices.

The study explores the dynamic effects of renewable energy investment (green financing), green technology, and trade openness on consumption-based (trade-adjusted) carbon emissions in BRICS economies from 2000 to 2020. The study employs the cross-section autoregressive distributed lag method for empirical estimation to address slope heterogeneity and cross-sectional dependency issues in panel data. The findings exhibit that green financing and sustainable technologies mitigate consumption-based carbon emissions in the long-run, while trade openness contributes to emissions in BRICS countries. The short-run outcomes are compatible with long-run; however, the magnitude of long-run estimates is larger than the short-run. Moreover, the error correction term reveals a significant negative coefficient value, endorsing the conversion towards steady-state equilibrium with a 37% yearly adjustment rate in case of any deviation from equilibrium. The robustness of results is confirmed through augmented mean group and common correlated effect mean group. These findings imply that BRICS countries should encourage financing in renewable energy projects and allocate R&D investment to promote the adaptation of sustainable technologies. In addition, sustainable and green trade policies would help to curb trade-adjusted pollution.

In the modern era, CO2 emissions is a popular and significant study topic. Environmental sustainability is adversely affected by CO2 emissions, which have become the main cause of climate change. Using panel data analysis, this study investigated the connections between CO2 emissions and economic development, capital accumulation, and the use of renewable energy. Long-term connections between variables were examined using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, taking into account heterogeneity and cross-sectional dependence. Additionally, the Dumitrescu–Hurlin Panel Granger Causality Test was used to assess dynamic interactions between variables. Although CH4 emissions increase CO2 emissions, the effects of economic growth and capital accumulation are not statistically significant, as determined using the AMG and CCEMG. Although the use of renewable energy was shown to have the potential to lower CO2 emissions, this impact was not statistically significant. The results of the dynamic panel demonstrate that CO2 emissions increase with capital accumulation. Although methane (CH4) emissions significantly impact CO2 emissions, economic growth, capital accumulation, and renewable energy use do not show statistically significant effects, highlighting the varying influences of these factors across nations. The findings of this study emphasize the need to integrate environmental regulations into capital investment strategies and adopt country-specific policies to effectively reduce CO2 emissions. They also underscore the need to customize green legislation to the specific conditions of each nation while simultaneously advocating for further expenditures in clean energy and the formulation of policies to supplant fossil fuels.

Role of resources rent, research and development, and information and communication technologies on CO2 emissions in BRICS economies

This study seeks to investigate how natural resources rents impact environmental sustainability measured by CO2 emissions and PM2.5 air pollution in Brazil, Russia, India, China, and South Africa (BRICS) economies from 1995 to 2019. To enhance robust policy implications, natural resources are decomposed into disaggregated (coal, gas, oil, forest, and mineral rents) and aggregated (total natural resources rents) indicators. Besides, the intervening roles of affluence, urbanization, and green policies vectoring green technological innovation, green finance, green energy, and waste management within the theoretical underpinning of STIRPAT model are considered. The empirical verification is anchored on second-generation estimators entailing Common Correlated Effects Mean Group, Augmented Mean Group, and Panel Quantile Regression. Similarly, Fully Modified OLS is employed to gauge the country-specific effects amidst varying robustness analyses. The fallouts from the analyses reveal that natural resources rents inhibit the attainments of environmental sustainability in BRICS economies by positively driving CO2 emissions and PM2.5 air pollution. Conversely, green policies are observed to substantially drive environmental sustainability by mitigating both pollutants whereas affluence and urbanization escalate them. The distributional effects from Panel Quantile Regression and Fully Modified OLS corroborate the main findings divergently. Additionally, two channels of causality, including unidirectional and bidirectional nexuses, are apparent from the estimated models. Policy measures are suggested based on the empirical findings.

This study examines the effects of health expenditure, energy consumption, CO2 emissions, population size, and income on health outcomes in 46 Asian nations between 1997 and 2019. Cross-sectional dependence (CSD) and slope heterogeneity (SH) tests are utilized due to the close linkages between Asian nations as a result of commerce, tourism, religion, and international agreements. The research uses unit root and cointegration tests of the second generation after validating CSD and SH issues. Due to the results of the CSD and SH tests, it is clear that conventional methods of estimation are inappropriate, so a new panel method, the inter autoregressive distributive lag (CS-ARDL) model, is used instead. In addition to CS-ARDL, the study's results were checked with a common correlated effects mean group (CCEMG) method and an augmented mean group (AMG) method. According to the CS-ARDL study, higher rates of energy use and healthcare spending lead to better health outcomes for Asian countries over the long run. CO2 emissions are shown to be harmful to human health, according to the study. The influence of a population's size on health outcomes is shown to be negative in the CS-ARDL and CCEMG, but favorable in the AMG. Only the AMG coefficient is significant. In most instances, the results of the AMG and CCEMG corroborate the results of the CS-ARDL. Among all the factors influencing life expectancy in Asian countries, healthcare spending is the most influential. Hence, to improve health outcomes, Asian countries need to take the required actions to boost health spending, energy consumption, and long-term economic growth. To achieve the best possible health outcomes, Asian countries should also reduce their CO2 emissions.

Clean energy consumption is essential for reducing environmental pollution and harmful emissions. Carbon dioxide is the most important air pollutant and a source of climate change worldwide, creating numerous issues for living organisms. The purpose of this study was to analyze the dynamic relationship between renewable energy consumption, global value chains, urbanization, and carbon emissions. This study utilized common correlated effects mean group and augmented mean group estimator econometric approaches to analyze panel data from 2000 to 2018 in BRICS countries. The findings revealed that renewable energy consumption and global value chains were negatively associated with carbon emissions in the BRICS economies, while urbanization was positively associated with CO2 emissions. These findings indicate that these variables play important roles in controlling air pollutants. It is concluded that high renewable energy consumption and participation in GVCs improve environmental quality by decreasing CO2 emissions. To capture the favorable impacts of variables along with economic activities, BRICS economies should increase renewable energy consumption by providing green finance. They should develop international collaborations to initiate green initiatives and adopt eco-friendly production practices to control environmental pollution.

ABSTRACTThis study examines the relationship between transport infrastructure investment, transport tax, institutional quality, and transport‐based CO2 emissions in nine selected European countries (Austria, Belgium, Finland, France, Germany, Hungary, Slovakia, Spain, and Sweden). In this regard, the study employs the cointegration tests and Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) long‐run estimators from 1995 to 2020. The cointegration test captures a long‐term relationship between transport infrastructure investment, transport tax, institutional quality, and transport‐based CO2 emissions. Furthermore, AMG long‐run test results reveal several empirical findings: (i) While transport infrastructure investment increases transport‐based CO2 emissions in Germany and Hungary, it has a reducing effect in Austria. (ii) Transport tax increases transport‐based CO2 emissions in Spain. However, it has a reducing effect in Slovakia and Sweden. (iii) Institutional quality increases transport‐based CO2 emissions in Austria, while it has a reducing effect in Slovakia. For a robustness check, the CCEMG long‐run estimator validates the AMG results. In the context of the findings, we recommend that policymakers implement long‐term transportation strategies through transport taxes and institutional quality.

Embracing energy efficiency (EE) and renewable energy (RE) is essential for improving environmental quality. This research investigates the asymmetric impacts of EE, RE, and other factors on CO2 emissions in BRICS (i.e., Brazil, Russia, India, China, and South Africa) countries from 1990 to 2014. In contrast to previous studies, the present study considers EE as a major cause of CO2 emissions in BRICS countries. By using the new hidden panel cointegration and nonlinear panel autoregressive distributive lag model, this study is the first of its kind that unfolds the asymmetric links among EE, RE, and CO2 emissions. Findings clearly explain that the impact of the selected variables on CO2 emissions is asymmetric, and both EE and RE help to lower CO2 emissions in BRICS countries. In the long run, positive shocks in EE and RE can significantly mitigate CO2 emissions in BRICS economies. In particular, a 1% fluctuation in the positive sum of EE reduces CO2 emissions by 0.783% in the long run. On the other hand, a 1% fluctuation in the positive component of RE reduces CO2 emissions by 0.733%. Moreover, individual country estimates suggest the heterogeneous effects among BRICS countries. Based on the empirical findings, policymakers should consider the asymmetric behavior of the EE, RE, and economic growth while formulating, energy, environment, and growth policies of BRICS countries. Graphical abstract.