Role of financial stability, technological innovation, and renewable energy in achieving sustainable development goals in BRICS countries

Global warming is the buzzword these days, where researchers and policymakers are working hard to figure out its causes and how we can achieve sustainable development goals. Several research studies have been conducted to determine the key factors that influence environmental degradation. However, studies have ignored the role of financial institutions in achieving sustainable development goals. Therefore, the present study evaluates the influence of financial stability on consumption-based-carbon emission for BRICS countries in the presence of renewable energy, technological innovation, industry value-added, and international trade over the period of 1995 to 2018. This study has simulated its analyses by utilizing the spatial Durbin model through the spatial time-fixed effect technique due to the cross-border spillover effect. The results show that financial stability, technological innovation, economic growth, and imports contribute to consumption-based carbon emissions, whereas renewable energy and exports negatively influence consumption-based carbon emissions. In the case of cross-border spillover analysis, the study's findings revealed that only renewable energy has a positive spillover effect among the variables with a significant effect, whereas economic growth and bilateral export have a negative effect on consumption-based carbon emission.

Automated summary

This study evaluates the influence of financial stability on consumption-based carbon emissions and considers factors such as renewable energy, technological innovation, economic growth, and international trade. The results demonstrate that financial stability, technological innovation, economic growth, and imports contribute to carbon emissions, while renewable energy and exports have a negative impact.