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In our groundbreaking exploration, we meticulously delve into the relationship between environmental policy stringency, international trade dynamics, and financial openness within the BRICS group (Brazil, Russia, India, China, and South Africa) spanning from 1996 to 2021. With a focus on critical variables such as economic growth and technological innovation, our empirical findings challenge conventional wisdom. Surprisingly, we found that those stringent environmental policies, when standing alone, do not invariably lead to reduce CO2 emissions. Equally interesting is our startling discovery that the anticipated moderating influence of environmental policy stringency, catalyzed by trade and foreign direct investment, on the well-being of our environment does not materialize; contrarily, both trade and foreign direct investment moderating channels exhibit unanticipated positive correlations with CO2 emissions. These revelations provoke us with the presence of a "pollution haven" phenomenon within the BRICS economies. Furthermore, our investigation reveals that, when examined individually, trade and foreign direct investment also appear to contribute to elevated emission levels. These findings provide a resolute solution to our research quandary, underlining the indispensable requirement for cutting-edge and robust environmental policies. These policies must possess the prowess to effectively counteract the adverse environmental consequences stemming from the amalgamation of global trade and financial integration. In doing so, they shall propel BRICS nations toward a future firmly grounded in principles of sustainability and ecological integrity. [ABSTRACT FROM AUTHOR]

The Paris Accord has brought the world's governments together to begin implementing plans for their individual economies to become carbon‐free. The goal of attaining low‐carbon growth is not, however, as simple as it would appear since the world economies, which are dependent on fossil fuels and are fast expanding, are concentrated on accelerating economic expansion at the price of worse environmental effects. In light of this, the study aims to investigate the combined effects of the composite risk index (CRI), green innovation (GINOV), and environmental policy stringency (EPS) on carbon dioxide (CO2) emissions in the context of Brazil, Russia, India, China, and South Africa (BRICS) countries while controlling for gross domestic product (GDP) and renewable energy research and development (RERD) over the period from 1960 to 2020. The research addresses the problems of cross‐sectional dependence and slope heterogeneity in the data set used for analysis by using the second‐generation cross‐sectionally augmented autoregressive distributed lags framework to evaluate long‐ and short‐run models. The corresponding findings show cointegrating relationships between the research variables. Additionally, the results of the regression demonstrate that EPS, GINOV, and RERD contribute to a long‐term decrease in CO2 emissions. CRI and GDP, however, increase CO2 emissions. It is suggested that environmental policies be tightened, GINOV and RERD expenditures be promoted, political stability and institutional quality be maintained, and clean economic growth strategies be adopted in order to help the BRICS countries reduce sectoral risks, create a sustainable environment, and decarbonize their respective economies. [ABSTRACT FROM AUTHOR]

In recent years, addressing the issue of carbon emissions has gained significant attention in the field of environmental sustainability. This study aims to contribute to the existing literature by investigating the interplay between eco-innovation, international trade, energy productivity, and consumption-based carbon emissions in the context of the BRICS economies. Using data spanning the period from 1990 to 2020, we employ advanced methodological techniques to overcome challenges associated with cross-section dependency, non-stationarity, and heterogeneity. The results of our study provide compelling evidence of a long-term cointegrating association between eco-innovation, energy productivity, economic growth, imports, exports and consumption-based carbon emissions. The results reveal that eco-innovations, exports, and energy productivity are associated with reductions in CO2 emissions. Conversely, imports and GDP growth contribute to higher CO2 emissions. Our findings have significant implications for policymakers, businesses, and stakeholders involved in shaping environmental policies and sustainable development strategies. The observed negative correlations between eco-innovation, exports, energy productivity, and consumption-based carbon emissions offer a clear channel for mitigating environmental pollution. By prioritizing and promoting eco-innovation initiatives, encouraging sustainable exports, and enhancing energy productivity, policymakers can effectively reduce carbon emissions and foster sustainable economic growth. [ABSTRACT FROM AUTHOR]

The study explores the dynamic effects of renewable energy investment (green financing), green technology, and trade openness on consumption-based (trade-adjusted) carbon emissions in BRICS economies from 2000 to 2020. The study employs the cross-section autoregressive distributed lag method for empirical estimation to address slope heterogeneity and cross-sectional dependency issues in panel data. The findings exhibit that green financing and sustainable technologies mitigate consumption-based carbon emissions in the long-run, while trade openness contributes to emissions in BRICS countries. The short-run outcomes are compatible with long-run; however, the magnitude of long-run estimates is larger than the short-run. Moreover, the error correction term reveals a significant negative coefficient value, endorsing the conversion towards steady-state equilibrium with a 37% yearly adjustment rate in case of any deviation from equilibrium. The robustness of results is confirmed through augmented mean group and common correlated effect mean group. These findings imply that BRICS countries should encourage financing in renewable energy projects and allocate R&D investment to promote the adaptation of sustainable technologies. In addition, sustainable and green trade policies would help to curb trade-adjusted pollution. [ABSTRACT FROM AUTHOR]

Against the backdrop of rising environmental concerns and an increase in awareness for renewable energy, the current paper explores the factors influencing renewable energy consumption by drawing a sample for BRICS nations from the period 1990 through 2015. To do so, we use dynamic common correlated effects, panel quantile regression methods and other robustness checks and find that environmental policy stringency index and human development index have significant and positive impact on renewable energy consumption. Other variables including carbon dioxide emission and gross fixed capital formation show statistically significant and negative link with renewable energy use. Our results emphasize upon stringency in existing environment policies and promoting renewable energy consumption. [ABSTRACT FROM AUTHOR]

Renewable energy has many benefits, but the most important is its ability to reduce our carbon emissions and help protect the environment. This study looks into the nonlinear effects of environmental policy stringency (EPS) on renewable energy investment in BRICS. To probe the short- and long-term connection, we exploited the nonlinear panel QARDL framework. According to the analysis's results, renewable energy investment rises at nearly all quantiles in response to both short- and long-run positive shocks in EPS. The long-run negative shocks in EPS reduce renewable energy investments at lower and medium quantiles only, whereas the short-term negative shocks in EPS significantly reduce renewable energy investment at most quantiles. At all quantiles, the short and long-run Wald test validates the dissimilar effect of EPS on renewable energy investment. Consequently, policymakers should distinguish between positive and negative shocks in the EPS when considering the effect of EPS on renewable energy investment. • The study investigates the relationship between environmental policy stringency and renewable energy investment in BRICS countries. • The study utilizes a nonlinear panel QARDL framework to analyze the short- and long-term effects of environmental policy stringency on renewable energy investment. • The results show that renewable energy investment increases at all quantiles in response to positive shocks in environmental policy stringency, both in the short and long run. • Long-run negative shocks in environmental policy stringency reduce renewable energy investments at lower and medium quantiles only. • Short-term negative shocks in environmental policy stringency significantly reduce renewable energy investment at most quantiles. [ABSTRACT FROM AUTHOR]