Terrorism, Policy Stringency, and Green Growth: A Study of BRICS

This study emphasises the growing importance of green growth in light of the environmental challenges posed by industrialisation and globalisation. Green growth is imperative for addressing environmental challenges by mitigating climate change and promoting resource efficiency. It drives economic development through innovation, job creation, and resilience to environmental risks, contributing to a more stable and competitive global economy. Additionally, green growth enhances societal well-being by improving public health, raising living standards, and fostering equitable development. The Environmental Policy Stringency Index (EPS), a critical indicator for assessing the severity of national environmental regulations, serves as the focus point. Along with policy stringency, terrorism appears to have a suppressing effect on green technological innovation. Additionally, there are implications for environmental sustainability, as terrorism is associated with financial losses and increased CO2 emissions. The study focuses on the role of policy stringency and terrorism in the green growth of BRICS countries, acknowledging their critical role in world development. Other variables considered include political stability, control of corruption, population, renewable energy consumption, and foreign direct investment from 1996 to 2020. For empirical purposes, this study employed a panel threshold regression model. The nuanced relationship between terrorism, institutions, and green growth has been found, where institution quality shows threshold effects. The impact of environmental policy stringency on green growth is also discussed, with market-based policies consistently demonstrating a positive influence. Based on the findings, a few policy suggestions were also discussed.