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Socio-Economic Drivers of Renewable Energy: Empirical Evidence from BRICS

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  • Usman Mehmood

    (Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan
    Department of Political Science, University of Management and Technology, Lahore 54770, Pakistan)

  • Ephraim Bonah Agyekum

    (Department of Nuclear and Renewable Energy, Ural Federal University, Mira 19, 620002 Ekaterinburg, Russia)

  • Salman Tariq

    (Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Department of Space Science, University of the Punjab, Lahore 54590, Pakistan)

  • Zia Ul Haq

    (Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan)

  • Solomon Eghosa Uhunamure

    (Faculty of Applied Sciences, Cape Peninsula University of Technology, P.O. Box 652, Cape Town 8000, South Africa)

  • Joshua Nosa Edokpayi

    (Faculty of Science, Engineering and Agriculture, University of Venda, Private Bag X5050, Thohoyandou 0950, South Africa)

  • Ayesha Azhar

    (Remote Sensing, GIS and Climatic Research Lab, National Center of GIS and Space Applications, Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan)

Abstract

There is a need to implement efficient strategies to mitigate the challenges of climate change and income inequalities in developing countries. Several studies have been conducted to address the relationship among different econometric and environmental indicators of renewable energy (RE) but overlooked the relationship between RE and income inequalities. This study investigates the influence of the distribution of income on the RE in Brazil, Russia, China, and South Africa (BRICS) between 1988 and 2017. The econometric (economic growth and trade), environmental, and institutional parameters are also integrated into the model. The outcomes reveal that reduced inequality in income distribution increases the consumption of RE. In contrast, CO 2 emissions have a positive correlation with RE. The governments should implement environmentally friendly policies and increase the consumption of renewable energy in the future with regards to reducing environmental pollution. Furthermore, findings from the study indicate a positive effect on the reduction of corruption in renewable energy. This shows that institutional quality can affect the uptake of renewable energy. The study further identified that growth in a country’s economy decreases RE consumption, suggesting that these countries prefer fossil fuels to gain economic growth. The Granger causality results show that a bidirectional causality exists between income inequality and RE consumption. Bidirectional causality is observed between income distribution and CO 2 emissions. The results from this study are important for policymakers to achieve sustainable development because fair income distribution and environmental quality are considered as two key factors for sustainable development. Strong institutions and control on corruption can bring sound social and economic gains. Therefore, fair distribution of income and strong institutional policies can increase RE consumption to achieve a clean environment.

Suggested Citation

  • Usman Mehmood & Ephraim Bonah Agyekum & Salman Tariq & Zia Ul Haq & Solomon Eghosa Uhunamure & Joshua Nosa Edokpayi & Ayesha Azhar, 2022. "Socio-Economic Drivers of Renewable Energy: Empirical Evidence from BRICS," IJERPH, MDPI, vol. 19(8), pages 1-10, April.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:8:p:4614-:d:791626
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