Green Growth, Green Technological Innovation, and Environmental Sustainability: Evidence from BRICS Economies
Abstract
This study investigates the effects of green growth (GG) and green technological innovation (GTI) on environmental degradation, measured by per-capita CO₂ emissions (LED), across the BRICS economies (Brazil, Russia, India, China, and South Africa) over the period 1990–2023. Motivated by the urgent need to balance fast-paced economic development with sustainable ecology in high-growth emerging economies, presents three key innovations: (i) the analysis of GG and GTI is conducted concurrently with the EKC dynamics in the context of the integrated PMG-ARDL approach; (ii) a newer dataset (1990–2023) compared to previous studies focusing on BRICS countries; and (iii) cross-sectional dependence tests and model robustness verification through Panel DOLS and FMOLS. Unit root testing shows mixed order of integration between I(0) and I(1), which fulfills PMG-ARDL requirements, while Kao residual co-integration test confirms the existence of long-term equilibrium among variables. The long-run estimation results show that GG and GTI have a significant impact on lowering CO₂ emissions by 0.38% and 0.65% per unit increase, respectively, which supports the Porter Hypothesis and decoupling paradigm. FDI also has a significant impact on lowering emissions (0.32%), which aligns with the Pollution Halo Hypothesis. Contrarily, fossil fuel use and population expansion contribute to worsening environmental quality. More importantly, the significant positive value of GDP and the negative value of GDP² validate the EKC hypothesis in BRICS.The error-correction term (−0.680) indicates that 68% of short-run deviations are corrected per period. Granger-causality tests reveal unidirectional causality from GG and GTI to LED, and bidirectional causality among GDP, FDI, fossil fuels, population growth, and LED. These findings advocate for coordinated policy frameworks that prioritise green technology investment, renewable energy transition, and carbon pricing across BRICS member states to attain Sustainable Development.
Keywords: green growth; green technological innovation; environmental degradation; PMG-ARDL; environmental kuznets curve; BRICS; decoupling.
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