Renewable energy solution to carbon emissions: BRICS countries in the grip of globalization and economic growth

Abstract

The BRICS countries (Brazil, Russia, India, China, and South Africa) are responsible for forty-two per cent of global carbon emissions. These rapidly industrializing and economically growing countries are dependent on fossil fuels, which can lead to increased emissions. This research analyses the impact of economic growth, globalization, and renewable energy (RE) use on CO2 using a unique dataset of 155 observations and a practical model. Using panel data for 1990–2020, this study examines the relationships between CO2 emissions, GDP, RE use, and the KOF Globalization Index based on the Environmental Kuznets Curve (EKC) theory. Cointegration, unit root test, panel data analysis, and FGLS regression methods were used in this study. The results show that economic growth and globalization increase CO2, while RE is insufficient to reduce these effects. Moreover, it is determined that globalization has an increasing effect on CO2. This study makes a prominent contribution to the literature by examining the combined effects of globalization and economic growth on environmental sustainability. The findings emphasize the need for sustainable energy policies in BRICS countries.