An assessment of the effect of green innovation, income, and energy use on consumption-based CO2 emissions: Empirical evidence from emerging nations BRICS

Energy and green innovation are important to a country's economic progress, but the externalities of increased pollution as a result of a rise in energy used and economic growth must not be overlooked. Within the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework, this study aims to check empirically the effect of environment-related technologies (ERT), coal consumption (CC), economic growth (EG), and population density (PD) on the consumption-based CO2 emissions (CCO2e) in the BRICS (i.e., Brazil, Russia, India, China, & South Africa), as with fast economic progress BRICS is facing problems of CO2 emission. The econometric techniques of the cross-sectional dependence test, slope heterogeneity test, and second-generation panel unit root test were used to check the nature of the data. The available balance data over the period 1985-2018 were analyzed via Driscoll and Kraay and a dynamic common correlated effect mean group (DCCEMG). Long-term empirical findings show that ERT has a negative impact on the CCO2e, while per capita GDP and CC have a positive impact on CCO2e. Empirical evidence recommends that ERT is important for BRICS countries' long-term sustainability. It is suggested that policymakers should encourage ERT that help in curbing their CO2 emanations.

Automated summary

Energy and green innovation are crucial for economic progress, but the negative impacts of increased pollution cannot be ignored. This study empirically examines the effects of environment-related technologies, coal consumption, economic growth, and population density on consumption-based CO2 emissions in the BRICS countries. The results show that environment-related technologies have a negative impact on CO2 emissions, while per capita GDP and coal consumption have a positive impact. Therefore, encouraging the use of environment-related technologies to reduce CO2 emissions is important for the long-term sustainability of BRICS countries.