How Green Innovations and Regulations Improve Environmental Sustainability in BRICS

What is it about?

The study investigates the roles of regulatory quality and green innovations in moderating the impact of various energy resources, structural changes, and financial development on environmental sustainability in BRICS economies from 1996 to 2019. Using advanced econometric methods like CS-ARDL, the findings reveal that renewable and nuclear energy, along with regulatory quality and green innovations, significantly contribute to reducing greenhouse gas emissions. Conversely, nonrenewable energy and financial development impede environmental goals. Robustness checks support these results. The study underscores the necessity of practical policies and international cooperation to achieve carbon neutrality and sustain global environmental health. Limitations of the study suggest areas for future research.

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Photo by Karsten Würth on Unsplash

Photo by Karsten Würth on Unsplash

Why is it important?

This research is crucial because it addresses the urgent need to mitigate greenhouse gas (GHG) emissions and achieve environmental sustainability, particularly within the BRICS economies, which are significant contributors to global carbon emissions. Understanding the mediating roles of regulatory quality and green innovations helps to identify effective strategies for reducing emissions and achieving carbon neutrality, which is vital for preventing catastrophic climate change and ensuring a sustainable future. Key Takeaways: 1. Role of Renewable and Nuclear Energy: The study demonstrates that renewable and nuclear energy resources, when supported by regulatory quality and green innovations, significantly contribute to reducing GHG emissions and promoting environmental sustainability. 2. Challenges of Nonrenewable Energy and Financial Development: Nonrenewable energy and financial development are identified as obstacles to achieving a sustainable environment, highlighting the need for a shift towards more sustainable energy sources and financial practices. 3. Policy Recommendations for BRICS Economies: The study suggests practical policies to enhance the pathway to a carbon-free environment, emphasizing the importance of regulatory quality and green innovations in achieving these goals within the BRICS economies.