Understanding the Role of Energy Productivity, Eco-Innovation and International Trade in Shaping Consumption-Based Carbon Emissions: A Study of BRICS Nations.

Abstract

In recent years, addressing the issue of carbon emissions has gained significant attention in the field of environmental sustainability. This study aims to contribute to the existing literature by investigating the interplay between eco-innovation, international trade, energy productivity, and consumption-based carbon emissions in the context of the BRICS economies. Using data spanning the period from 1990 to 2020, we employ advanced methodological techniques to overcome challenges associated with cross-section dependency, non-stationarity, and heterogeneity. The results of our study provide compelling evidence of a long-term cointegrating association between eco-innovation, energy productivity, economic growth, imports, exports and consumption-based carbon emissions. The results reveal that eco-innovations, exports, and energy productivity are associated with reductions in CO2 emissions. Conversely, imports and GDP growth contribute to higher CO2 emissions. Our findings have significant implications for policymakers, businesses, and stakeholders involved in shaping environmental policies and sustainable development strategies. The observed negative correlations between eco-innovation, exports, energy productivity, and consumption-based carbon emissions offer a clear channel for mitigating environmental pollution. By prioritizing and promoting eco-innovation initiatives, encouraging sustainable exports, and enhancing energy productivity, policymakers can effectively reduce carbon emissions and foster sustainable economic growth.