Do drivers of renewable energy consumption matter for BRICS economies? Nexus among technological innovation, environmental degradation, economic growth, and income inequality

In light of increasing concerns about climate change and energy security, renewable energy has been seen as the most promising solution to fulfl future energy needs. This study examines the drivers of renewable energy consumption (REC) and the nexus between GDP growth, technological innovation, gross fxed capital formation, CO2 emissions, income inequality, and renewable energy consumption (REC) using annual data from BRICS countries. To this end, the study uses the augmented mean group (AMG) estimator, a second-generation estimator that takes slope homogeneity and cross-sectional dependence into consideration. For robustness, the pooled mean group (PMG) estimator has also been utilized. The fndings of both estimators indicate that carbon emissions, technological innovation, and gross fxed capital formation exert adverse and signifcant impacts on REC. The fndings also show that the use of renewable energy will rise as income inequality declines. We also employ the Dumitrescu and Hurlin (DH) granger causality test. The results of the analysis demonstrate a one-way causal association between income inequality and REC. This fnding confrms that a reduction in income inequality will have a major impact on the adoption of renewable energy sources

The Impact of Income Inequality, Renewable Energy Consumption, Non-Renewable Energy Consumption and Per Capita Income on Poverty: Evidence from BRICS Economies

The main purpose of this study is to investigate the role of income inequality, per capita renewable and per capita non-renewable energy consumption, per capita income on poverty reduction in BRICS (Brazil, Russia, India, China, South Africa) countries over the period between 1991–2019. This study used second-generation panel data methodologies taking into account cross-dependence between countries, which gives more accurate results. The outcomes of the panel ARDL unveiled that while an increase in income inequality and per capita non-renewable energy consumption increases poverty, an increase in growth and per capita renewable energy consumption decreases poverty. Based on the findings, policymakers should focus their efforts on developing an appropriate energy strategy that highlights the necessity of a renewable energy-driven economy powered by energy-saving technologies

An environmental perspective of energy consumption, overpopulation, and human capital barriers in South Asia

Prior literature is substantive in highlighting the nexus between pollutant and socio-economic predictors; however, the role of human interaction has not been sufficiently explored. Thus, the present study examines the validity of the environmental Kuznets Curve (EKC) hypothesis in the presence of energy consumption, overpopulation, and human capital index in five South Asian countries. It employs fixed effects, random effects, and dynamic panel causality techniques with a set of panel data from 1972 to 2021. The baseline results validate the existence of the EKC hypothesis in the recipient panel. Nevertheless, the findings reveal that energy consumption and population density have positive effects, while human capital has negative impacts on CO2 emissions. Furthermore, the study observes that energy consumption and per capita GDP have a significant causal link with CO2 emissions, whereas CO2 emissions are evident to have causality with population density and human capital index. The results are robust and suggest that the consolidation of an effective regulatory framework and technological improvements are substantial measures to improve environmental quality in South Asia. Moreover, allocating sufficient resources to uplift contemporary educational and health status would be imperative to improving environmental quality as aspired to by the Paris Agreement

The role of education in the Environmental Kuznets Curve. Evidence from Australian data

This paper is based on the underlying idea that the use of energy resources in a society significantly depends on their level of education. Then, it is hypothesized that education might directly affect environmental quality by worsening it at early stages and improving it once education expands from its certain level. Thus, we pursue an extension of the standard Environmental Kuznets Curve by including an indicator of the evolution of citizens' education. This empirical strategy might avoid bias on income coefficients and, in turn, assess the value of education as environmental policy. An application for Australia is given to illustrate this possibility by using higher education data for a large time span (1950–2014). Empirical results suggest that, in most of the studied period, expansion in education rate has increasingly compensated the rise of per capita CO2 emissions stemming from the economic growth. Moreover, only in recent years, both per capita income and education expansion have been proved to reduce emissions. However, provided that income growth is difficult to manage, it would be worth considering the possibility of promoting education in order to achieve environmental objectives

Moderating impact of FDI on the growth-environment nexus

This paper aims to investigate the moderating presence of FDI in the nexus amid economic progression and quality of environment in 115 countries, and various income panels of countries from 1992 to 2019, based on a theoretical underpinning of the Environmental Kuznets Curve (EKC). The results reveal a significant positive influence of energy consumption on CO2 discharges across all income panels. The interaction between FDI and square of GDP leads to a decrease in CO2 emissions for low and lower-middle income countries, whereas a drop in PM2.5 discharges is distinctively recorded for low, lower middle, high income, and overall income levels. Likewise, the interaction of FDI with manufacturing growth exhibits a negative influence on CO2 emissions reduction in both low and lower-middle income economies, and a reduction in CH4 discharges for upper-middle, high income, and overall income levels. All these results support the EKC hypothesis and offer a useful insight for countries that intend to pursue green economic growth with due consideration for energy consumption and environmental pollution

International inequalities in per capita CO 2 emissions : a decomposition methodology by Kaya factors

In this paper, we provide a methodology for decomposing international inequalities in per capita CO2 emissions into Kaya (multiplicative) factors and two interaction terms. We use the Theil index of inequality and show that this decomposition methodology can be extended for analyzing between- and within-group inequality components. We can thus analyze the factors behind inequalities in per capita CO2 emissions across countries, between groups of countries and within groups of countries. The empirical illustration for international data suggests some points. Firstly, international inequality in per capita CO2 emissions is mainly attributable to inequalities in per capita income levels, which helps to explain its recent reduction, while differences in carbon intensity of energy and energy intensity have made a less significant contribution. This result is strongly influenced by the performance of China and India. Secondly, the between-group inequality component, which is the biggest component, is also largely explained by the income factor. Thirdly, the within-group inequality component increased slightly during the period, something mainly due to the change in the income factor and the interaction terms in a few regions