Dynamics between economic activities, eco-friendly energy and ecological footprints: a fresh evidence from BRICS countries

Abstract

PurposeEnvironmental protection and conservation of resources is a challenge for policymakers to attain sustainable growth and development. The current study uses the variable of inclusive growth instead of the traditional measure of growth.Design/methodology/approachThe link between inclusive growth, renewable energy, industrial production, trade openness and the environment is explored by using panel data from 1995 to 2019 in Brazil, Russia, India, China and South Africa (BRICS) countries. Before applying formal techniques, unit root tests were applied to check the stationarity of each variable. The long-run relationship among factors was found by the Kao cointegration test. The panel dynamic ordinary least squares (DLOS) was employed for regression estimation.FindingsThe results verified a decrease in ecological footprint (EF) in response to a potential rise in renewable energy consumption. An upsurge in EFs was explored due to a rise in gross domestic product (GDP) per person employed and trade openness. The EF significantly decreased by 0.671% in response to a 1% rise in renewable energy consumption.Research limitations/implicationsIt is highly suggested to enhance renewable energy usage. To achieve this, policymakers should implement and emphasize efficient energy technologies to ensure improving the environment. Efficient use of renewable energy resources will decrease global warming effects and ensure the sustainable use of scarce resources.Originality/valueIt first took into account the variable of inclusive growth instead of traditional growth measures. It explored the impact of GDP per person employed as an indicator of inclusive growth.