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The role of green finance and governance effectiveness in the impact of renewable energy investment on CO 2 emissions in BRICS economies.
- Source :
-
Journal of environmental management [J Environ Manage] 2024 May; Vol. 358, pp. 120906. Date of Electronic Publication: 2024 Apr 17. - Publication Year :
- 2024
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Abstract
- In the context of sustainable development, this study investigates the intricate dynamics among good governance, renewable energy investment, and green finance in BRICS nations. The aim of the study is to assess how green finance and governance effectiveness moderate the impact of renewable energy investment on CO <subscript>2</subscript> emissions. Utilizing the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model, a meticulous analysis spanning two decades was conducted to unravel the relationships among key variables and CO <subscript>2</subscript> emissions. The findings underscore a nuanced interplay where renewable energy investments, synergized with robust governance and strategic green finance, significantly mitigate CO <subscript>2</subscript> emissions, contributing to sustainable economic development. However, the study reveals non-linear relationships, highlighting the necessity for optimal allocation and strategic planning to maximize environmental benefits. In the short-run, a government effectiveness policy threshold that should be attained in order for renewable energy investment to reduce CO <subscript>2</subscript> emissions is provided. In the long-run, the negative responsiveness of CO <subscript>2</subscript> emissions to renewable energy investment is further consolidated by green finance. Moreover, enhancing renewable energy investment in the long run is positive for environmental sustainability. It follows that policy makers should tailor policies aimed at enhancing renewable energy investment in the long-run as well as complementing renewable energy investment with green finance in the long-run in order to ensure environmental sustainability by means of reducing CO <subscript>2</subscript> emissions. Policymakers in BRICS nations are urged to strengthen governance structures, promote renewable energy investments, leverage green finance, foster public-private partnerships, adopt a holistic approach, and address non-linear effects to accelerate the transition to a low-carbon economy.<br />Competing Interests: Declaration of competing interest The authors have no conflict of interest to declare.<br /> (Copyright © 2024 The Authors. Published by Elsevier Ltd.. All rights reserved.)
Details
- Language :
- English
- ISSN :
- 1095-8630
- Volume :
- 358
- Database :
- MEDLINE
- Journal :
- Journal of environmental management
- Publication Type :
- Academic Journal
- Accession number :
- 38636419
- Full Text :
- https://doi.org/10.1016/j.jenvman.2024.120906