Do Real Output and Renewable Energy Consumption Affect CO2 Emissions? Evidence for Selected BRICS Countries

Abstract

Climate change is one of the most important global problems faced by the international community. It is generally believed that increasing the consumption of renewable energy is an effective measure to promote CO2 emissions reduction. Therefore, renewable energy consumption has become one of the best alternative strategies for sustainable development. Based on this, this paper employs the 3SLS model to conduct an empirical study on the relations among real output, renewable energy consumption, and CO2 emissions of BRICS countries (except Russia) in 1999–2014. The empirical results support, for BRICS group, the complete tri-variate relationships (energy-output-emission nexus), and renewable energy had a significant positive impact on the real output, and vice versa. Besides, compared with other countries, Brazil also has the same tri-variate relationships as BRICS group. However, China has no relationship from real output to renewable energy consumption and from real output to CO2 emissions; India does not have the relationship from real output to renewable energy consumption and the bilateral relationship between real output and CO2 emissions; the relationship between variables in South Africa only occurs in the energy output chain. Finally, according to the estimation results of the simultaneous equation, the BRICs governments should consider the importance of human capital level and financial development when controlling the real output level and pollution. In addition, it should be noted that effective energy policies help to reduce carbon dioxide emissions without compromising real output.

Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

“…Financial development positively entices the growth of renewable energy consumption in BRIC nations, especially in the long run, which is align existing literature see, for instance, Shahbaz, et al [120]; Alsaleh and Abdul-Rahim [121], Liu, et al [122], and Burakov and Freidin [30]. Renewable energy has the potential to be a useful instrument in the pursuit of energy diversification through reduced reliance on fossil fuel supplies.…”

Investigate the role of technology innovation and renewable energy in reducing transport sector CO2 emission in China: A path toward sustainable development

“…Other researchers such as Liu, Ma, Ren, and Zhao (2020), have also evaluated CO 2 _EMS and EN_CON from an international viewpoint.…”

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

“…However, by supporting the usage of new technologies and enforcing the climate control regulations, FD mitigates its negative impacts on environment (Pata 2018 ). Moreover, REC also reduces CO2 emission (Liu et al 2020 ) and improves economic growth (Khoshnevis Yazdi and Shakouri 2017 ). Likewise, Apergis ( 2019 ) argued that that renewable is the cornerstone for combating environment change caused by massive energy usage.…”