Exploring the nexuses of disintegrated energy consumption, structural change, and financial development on environmental sustainability in BRICS: modulating roles of green innovations and regulatory quality

Ridwan Lanre Ibrahim, Ilhan Ozturk, Mamdouh Abdulaziz Saleh Al-Faryan, Usama Al-Mulali

    Research output: Contribution to journalArticlepeer-review

    Abstract

    The global economy today is working towards neutralizing greenhouse gas emissions which has been viciously polluted the ecosystem beyond many expectations. Therefore, this study probes how regulatory quality and green innovations intermediate among disintegrated energy resources (renewable, nuclear, and nonrenewable energy), structural change, and financial development to promote environmental sustainability in BRICS. The study relies on recent econometric procedures such as second generation unit root and cointegration tests, homogeneity tests, and cross-sectional autoregressive distributed lag (CS-ARDL) estimation technique using data from 1996 to 2019. The results show how the interventions of regulatory quality and green innovations enhance the effects of other regressors to substantially moderate the surge in GHG emissions. Among others, renewable energy, nuclear energy, and structural change provide adequate support for achieving environmental sustainability in the presence of the two mediating variables. In contrast, nonrenewable energy and financial development serve as setbacks in the pursuance of sustainable environment. In addition, robustness checks based on common correlated effects mean group, augmented mean group and quantile regression estimators provide support to show persistence in the CS-ARDL results. Practicable policies enhance the pathway to carbon free environment are suggested for the BRICS economies.

    Original languageEnglish
    Article number102529
    Number of pages12
    JournalSustainable Energy Technologies and Assessments
    Volume53
    Issue numberPart B
    Early online date28 Jul 2022
    DOIs
    Publication statusPublished - 1 Oct 2022

    Keywords

    • disintegrated energy
    • structural change
    • financial development
    • regulatory quality
    • green innovation
    • environmental sustainability

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