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Renewable energy pathways toward carbon neutrality in BRICS nations: a panel data analysis

Author

Listed:
  • Jiayu Yang

    (Nankai University)

  • Haocheng Fang

    (Nankai University)

  • Feiyan Jing

    (Nankai University)

Abstract

This study employs the CS-ARDL estimator to model the adoption of renewable energy within BRICS nations spanning the period from 1995 to 2021. The key findings reveal that a 1% increase in foreign direct investment (FDI) has a negative impact on green consumption, with approximately a 0.21% decline in the short-term and a 0.48% decrease in the long-term. Furthermore, a 1% increase in GDP leads to a reduction of 0.04% in short-term and 0.12% in long-term green consumption. On a positive note, an augmentation in environmental tax revenues exerts a favorable influence on green consumption, with an increase of about 0.17% in the short-term and 0.20% in the long-term. The presence of a larger green financial market significantly accelerates green consumption. Policy implications encompass strategies such as attracting green FDI, financing environmentally friendly projects, developing digital green financial markets, and expanding trade networks for green utilities with other nations.

Suggested Citation

  • Jiayu Yang & Haocheng Fang & Feiyan Jing, 2024. "Renewable energy pathways toward carbon neutrality in BRICS nations: a panel data analysis," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:2:d:10.1007_s10644-024-09620-1
    DOI: 10.1007/s10644-024-09620-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable energy development; Carbon neutralization; Green fiscal policy; Green monetary policy; BRICS;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • F15 - International Economics - - Trade - - - Economic Integration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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