IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i2p45-d1589283.html
   My bibliography  Save this article

Renewable Energy Transition on Employment Dynamics in BRICS Nations

Author

Listed:
  • Nyiko Worship Hlongwane

    (Department Economics and Econometrics, University of Johannesburg, 5 Kings Way Ave, Johannesbur 2092, South Africa)

  • Hlalefang Khobai

    (Department Economics and Econometrics, University of Johannesburg, 5 Kings Way Ave, Johannesbur 2092, South Africa)

Abstract

As the world transitions towards a low-carbon economy, understanding the employment implications of renewable energy growth is crucial, particularly in emerging economies like the BRICS nations, where energy demand and employment pressures are rapidly evolving. The justification for this study lies in the critical need to understand the employment effects of renewable energy growth in emerging economies, particularly in the BRICS nations, which account for a significant share of global energy demand and are poised to drive the next wave of renewable energy adoption. As these countries navigate the challenges of energy transition, employment creation, and sustainable development, this research aims to provide timely and actionable insights for policymakers, industry stakeholders, and researchers seeking to optimize the employment benefits of renewable energy growth in these regions. The purpose of this study is to investigate the impact of disaggregated renewable energy (solar, hydro, wind, nuclear, and other renewables including bioenergy) on employment dynamics in BRICS nations, so as to provide empirical evidence on the employment effects of renewable energy growth in these regions. The key findings from the study are summarized as follows: Hydro contributes positively to employment creation in BRICS nations, with FMOLS (0.78%), DOLS (2.06%), and PCSE (0.61%) results showing significant positive effects. Solar contributes positively to employment creation in BRICS nations, with FMOLS (1.99%) and DOLS (9.60%) results showing significant positive effects, although country-specific results are mixed. Economic growth contributes positively to employment creation in BRICS nations, with FMOLS (32.93%), DOLS (36.86%), and PCSE (27.68%) results showing significant positive effects. Wind contributes negatively to employment creation in BRICS nations at the aggregate level (FMOLS, −0.66%), but has positive effects in some countries (Brazil, China, Russia, and South Africa). Nuclear contributes negatively to employment creation in BRICS nations at the aggregate level (FMOLS, −0.47%; PCSE, −1.04%), but has positive effects in some countries (Russia, India, China, and South Africa). Other Renewables contribute negatively to employment creation in BRICS nations, with FMOLS (−2.57%) and PCSE (−4.77%) results showing significant negative effects. Policymakers in BRICS nations should prioritize investments in hydropower, solar power, and wind power to leverage their job creation potential and promote sustainable economic growth. Additionally, governments should implement policies to support the development of other renewable energy sources, such as bioenergy, geothermal, and tidal power, to increase their job creation potential. Furthermore, policymakers should promote economic growth through green investments and sustainable development initiatives to maximize employment creation in the renewable energy sector.

Suggested Citation

  • Nyiko Worship Hlongwane & Hlalefang Khobai, 2025. "Renewable Energy Transition on Employment Dynamics in BRICS Nations," Economies, MDPI, vol. 13(2), pages 1-27, February.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:2:p:45-:d:1589283
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/2/45/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/13/2/45/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    2. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mitch Kunce, 2022. "The Tenuous Ecological Divorce and Unemployment Link with Suicide: A U.S. Panel Analysis 1968-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(3), pages 1-2.
    2. Shinwari, Riazullah & Wang, Yangjie & Gozgor, Giray & Mousavi, Mahdi, 2024. "Does FDI affect energy consumption in the belt and road initiative economies? The role of green technologies," Energy Economics, Elsevier, vol. 132(C).
    3. Ha, Le Thanh, 2022. "Effects of digitalization on financialization: Empirical evidence from European countries," Technology in Society, Elsevier, vol. 68(C).
    4. Mitch Kunce, 2022. "A 'Natural' Suicide Rate, Hysteresis or Suicide Persistence? Evidence from U.S. State-Level Panel Data, 1980-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(2), pages 1-2.
    5. Ibrahim Shittu & Abdul Saqib & Abdul Rais Abdul Latiff & Siti ‘Aisyah Baharudin, 2024. "Energy Subsidies and Energy Access in Developing Countries: Does Institutional Quality Matter?," SAGE Open, , vol. 14(3), pages 21582440241, August.
    6. Chung, Changwoo & Kim, Jinsoo, 2024. "Greenflation, a myth or fact? Empirical evidence from 26 OECD countries," Energy Economics, Elsevier, vol. 139(C).
    7. Shengmiao Han & Badrul Hisham Bin Kamaruddin & Xing Shi, 2025. "The Intertwined Threads of Blue Economy, Inclusive Growth, and Environmental Sustainability in Transition Economies," Sustainability, MDPI, vol. 17(3), pages 1-24, January.
    8. Anne Musson, 2012. "The importance of the stakeholders’ involvement in building indicators. The case of environmental regulation in France," Working Papers hal-02947023, HAL.
    9. Barbara ERMINI & Raffaella SANTOLINI, 2013. "Does globalization matter on fiscal decentralization of OECD?," Working Papers 390, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Muntasir Murshed & Kashif Abbass & Seemran Rashid, 2021. "Modelling renewable energy adoption across south Asian economies: Empirical evidence from Bangladesh, India, Pakistan and Sri Lanka," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5425-5450, October.
    11. Amir Iqbal & Wei Zhang & Sayeda Jahangir, 2025. "Building a Sustainable Future: The Nexus Between Artificial Intelligence, Renewable Energy, Green Human Capital, Geopolitical Risk, and Carbon Emissions Through the Moderating Role of Institutional Qu," Sustainability, MDPI, vol. 17(3), pages 1-40, January.
    12. José M. Alonso & Judith Clifton & Daniel Díaz-Fuentes, 2015. "Did New Public Management Matter? An empirical analysis of the outsourcing and decentralization effects on public sector size," Public Management Review, Taylor & Francis Journals, vol. 17(5), pages 643-660, May.
    13. Anastasiou, Dimitrios & Bragoudakis, Zacharias & Giannoulakis, Stelios, 2021. "Perceived vs actual financial crisis and bank credit standards: Is there any indication of self-fulfilling prophecy?," Research in International Business and Finance, Elsevier, vol. 58(C).
    14. Le Thanh Ha & Pham Thi Ngoc Hanh & Nguyen Thi Thu Hang & Hoang Dang Khanh & Le Lan Phuong & Hoang Hop, 2024. "Is digital business an enabler of enhanced entrepreneurship? An empirical investigation of European countries," Journal of International Entrepreneurship, Springer, vol. 22(2), pages 164-186, June.
    15. Zhang, Chuanguo & Zhou, Xiangxue, 2016. "Does foreign direct investment lead to lower CO2 emissions? Evidence from a regional analysis in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 943-951.
    16. Çetin, Murat & Sarıgül, Sevgi Sümerli & Işık, Cem & Avcı, Pınar & Ahmad, Munir & Alvarado, Rafael, 2023. "The impact of natural resources, economic growth, savings, and current account balance on financial sector development: Theory and empirical evidence," Resources Policy, Elsevier, vol. 81(C).
    17. Ha, Le Thanh, 2023. "The role of financial development in enhancing trades in environmental goods: International insights from 119 countries," Journal of Commodity Markets, Elsevier, vol. 29(C).
    18. Li, Wenqing & Qiao, Yuanbo & Li, Xiao & Wang, Yutao, 2022. "Energy consumption, pollution haven hypothesis, and Environmental Kuznets Curve: Examining the environment–economy link in belt and road initiative countries," Energy, Elsevier, vol. 239(PE).
    19. Mitch Kunce, 2023. "Unemployment and Suicide in the United States: The Import of Addressing Cross-Sectional Dependence," Bulletin of Applied Economics, Risk Market Journals, vol. 10(1), pages 1-19.
    20. To Trung Thanh & Le Thanh Ha & Hoang Phuong Dung & Tran Thi Lan Huong, 2023. "Impacts of digitalization on energy security: evidence from European countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11599-11644, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:2:p:45-:d:1589283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.