The heterogeneous impact of geopolitical risk and environment-related innovations on greenhouse gas emissions: The role of nuclear and renewable energy in the circular economy

Abstract

A transition to a circular economy (CE) has emerged as one of the most important worldwide endeavors in the pursuit of sustainable economic systems. However, the conceptual link between sustainable development and the circular economy is a subject of continuous discussion. Specifically, the degree to which CE activities contribute to the reduction of environmental pollution seems to be an unresolved topic. This study aims to develop possible mechanisms for perspectives of nuclear and renewable energy in a circular economy as solutions that may have economic, financial, social, and environmental co-benefits due to the effective use of environmentally connected technology, decreased emissions, and the promotion of innovation. This study utilizes continuously updated, fully modified and continuously updated, bias-corrected, newly advanced panel approaches; for robustness, a panel quantile regression was executed. The results indicate that nuclear energy, renewable energy, and environment-related technology facilitate greenhouse gas (GHGs) abatement, while the influence of geopolitical risk and economic growth are ineffective in reducing GHG emissions. These findings propose, several policy considerations are recommended to combat BRICS GHG emissions.