Renewable energy and CO₂ emissions: the economics and geopolitical implications, experiences from the BRICS nations

Abstract

Purpose

The purpose of this study is to examine how renewable energy consumption moderates the relationship between inequality and carbon dioxide (CO₂) emissions for Brazil, Russia, India, China and South Africa (BRICS). The nexus between energy use and geopolitical tensions has also been explored.

Design/methodology/approach

This study has used distinctive data sets from 1990 to 2018 to explore the interconnections on emission, energy use, inequality and geopolitics. To do away with the difficulties related to heterogeneity and cross-sectional dependence (CD), this paper uses recent estimation methods that are robust to panel heterogeneity and CD.

Findings

The results of the panel augmented mean group (AMG) estimation and common correlated effects mean group (CCEMG) estimation verify the environmental Kuznets curve. The findings show that a 1% rise in Gini inequality leads to a 0.24% rise in the CO₂ emission (AMG) method and a 0.17% rise in emissions CCEMG (method). As far as the moderating impact of renewable energy upon Gini measure of inequality is concerned, it is −0.10 AMG and CCEMG methods of estimation, respectively. However, the moderating impact of renewable energy on the geopolitical index leads to a mitigating impact on CO₂ emissions, 0.55% decline in AMG method.

Originality/value

This research makes a distinctive contribution by investigating for the first time to the best of the authors’ knowledge the main pillars of sustainable ecological development in the context of the BRICS nations.

Citation

Ghosh, S. (2022), "Renewable energy and CO₂ emissions: the economics and geopolitical implications, experiences from the BRICS nations", International Journal of Energy Sector Management, Vol. 16 No. 6, pp. 1064-1090. https://doi.org/10.1108/IJESM-08-2021-0024