Uncovering the role of stringent environmental policies and energy transition in the achievement of SDG-13: Evidence from BRICS countries by WLMC model

Countries take measures to protect the environment as compatible with the increasing interest in climate change-related issues. In this context, this research analyzes the impact of environmental policy stringency (EPS), energy transition index (ETI), and income (GDP) on environmental quality. In doing this, the study examines BRICS countries, which are the leading developing countries that cause higher emissions, consume higher amounts of energy, and have higher economic growth, uses data from 2000/Q1 to 2020/Q4, and performs wavelet local multiple correlation (WLMC) model to investigate the relationship under time and frequency-based diverging scheme. In bivariate cases, EPS, ETI, and GDP have a differentiating impact on load capacity factor (LCF) across countries, where there are some exclusions. These factors have a generally increasing impact on LCF. In contrast, EPS has a decreasing impact at low (medium) frequency in Russia (South Africa), ETI has a declining impact at high frequency in Brazil and China, GDP has a decreasing impact at lower frequency in Russia, medium and high frequency in China, and higher frequency Brazil and South Africa. In four-variate cases, the factors have a fully increasing impact on LCF in the countries for all times and frequencies, while the impact is stronger at higher frequencies. GDP is the dominant factor in India and China, while ETI (EPS) is leading in Brazil and Russia (South Africa). Thus, the study reveals the dynamic impacts of EPS, ETI, and GDP on LCF, which diverge across times, frequencies, and countries. Accordingly, policy options for BRICS are argued.