Can undergoing renewable energy transition assist the BRICS countries in achieving environmental sustainability?

ABSTRACT

The BRICS countries ratified the 2030 Sustainable Development Goals agenda whereby ensuring environmental sustainability is of paramount importance for these emerging market economies. Although the BRICS nations have recorded noteworthy economic growth trajectories over the last couple of decades, these nations have not fared well in terms of improving their environmental indicators, especially due to gradually becoming more fossil fuel dependent over time. Hence, this study aims to explore whether undergoing the renewable energy transition can directly and indirectly establish environmental sustainability in the BRICS countries by containing their annual growth rates of carbon dioxide emissions. Additionally, the emission growth rate-influencing effects of technological innovation, foreign direct investment receipts, urbanization, and institutional quality are also evaluated. Based on data spanning from 1996 to 2021 and considering the result obtained using advanced panel data estimators, the findings endorse that the yearly carbon emission growth rates are (a) unaffected by undergoing the renewable energy transition on its own; (b) positively impacted by technological innovation, net receipts of foreign direct investment, and urbanization; and (c) negatively impacted by improving institutional quality through effective controlling of the spread of corruption. More importantly, the results verify the joint carbon emission growth rate-mitigating impact of renewable energy transition and institutional quality improvement. Hence, for abating the emission growth rate figures, several policies are prescribed.