Toward a sustainable environment and economic growth in BRICS economies: do innovation and globalization matter?

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Toward a sustainable environment and economic growth in BRICS economies: do innovation and globalization matter?
Authors: Opeoluwa Seun Ojekemi, Husam Rjoub, Abraham Ayobamiji Awosusi, Ephraim Bonah Agyekum
Journal: Environmental Science and Pollution Research
Volume: Volume 29
Published: 30 March 2022

This study examines the interplay between innovation, globalization, renewable energy, trade, financial development, and economic growth on consumption-based carbon emissions (CCO2) in BRICS countries from 1990 to 2018. It applies advanced panel techniques including the Common Correlated Effects Mean Group (CCEMG), Augmented Mean Group (AMG), and Dumitrescu-Hurlin causality tests to analyze long-run and short-run dynamics.

The results indicate that renewable energy usage, exports, and technological innovation significantly reduce CCO2 emissions, whereas economic growth and imports contribute to environmental deterioration. Financial development showed no predictive power on emissions, while other variables demonstrated causal relationships with CCO2.

Policy implications highlight the need for BRICS countries to adopt regulatory frameworks and initiatives promoting renewable energy and technological innovation. Strengthening sustainable energy practices alongside trade and innovation policies can help balance economic growth with environmental sustainability, supporting long-term ecological and economic objectives.