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The dynamic influence of energy consumption, fiscal policy and green innovation on environmental degradation in BRICST economies

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  • Ma, Beiling
  • Sharif, Arshian
  • Bashir, Madiha
  • Bashir, Muhammad Farhan

Abstract

The global consensus on overcoming climate change and environmental sustainability has increased the urgency towards formulating stringent environmental and fiscal policy instruments in achieve environmental sustainability. The current study extends policy deliberations by studying how energy transition and fiscal policy measures impact the ecological footprint of BRICST economies from 1995 to 2021. Our findings from Driscoll-Kraay standard errors, FMOLS, DOLS, and method of moments quantile regression identify that energy transition, renewable energy, taxation revenues and green innovation improve environmental sustainability, while non-renewable energy consumption and governmental expenditures exacerbate environmental challenges. Our econometric analysis allows us to propose that policymakers must use fiscal policy measures to introduce structural changes and foster the adoption of environmental technologies in the industrial sector. Furthermore, developing economies must broaden tax base to increase environmental spending on upgrading renewable energy infrastructure and lower ecological burden.

Suggested Citation

  • Ma, Beiling & Sharif, Arshian & Bashir, Madiha & Bashir, Muhammad Farhan, 2023. "The dynamic influence of energy consumption, fiscal policy and green innovation on environmental degradation in BRICST economies," Energy Policy, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:enepol:v:183:y:2023:i:c:s0301421523004081
    DOI: 10.1016/j.enpol.2023.113823
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