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Catalyzing climate change mitigation: investigating the influence of renewable energy investments across BRICS

Author

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  • Azer Dilanchiev

    (International Black Sea University)

  • Bobur Urinov

    (Tashkent State University of Economics)

  • Sugra Humbatova

    (Azerbaijan State University of Economics, UNEC)

  • Gunay Panahova

    (Azerbaijan State University of Economics, UNEC)

Abstract

The study examines the relationship between climate change, the interconnected elements of BRICS countries, and investments in research and development for renewable energy. The paper employing the augmented mean group estimator and Dumitrescu–Hurlin non-causality test for the economy of BRICS countries from 1990 to 2021 revealed robust evidence that increasing investments in renewable energy research and development (RandD) significantly reduces greenhouse gas emissions in BRICS nations. A 1% increase in per capita renewable energy RandD spending is associated with a 2.24% decrease in emissions. Likewise, a 1% rise in overall energy technology RandD budgets corresponds to a 3.15% emissions reduction. These findings highlight the considerable potential of innovation-focused policies to promote sustainability alongside continued economic growth. It suggests the need for more research to devise effective policies that use RandD to reduce emissions without compromising larger development objectives.

Suggested Citation

  • Azer Dilanchiev & Bobur Urinov & Sugra Humbatova & Gunay Panahova, 2024. "Catalyzing climate change mitigation: investigating the influence of renewable energy investments across BRICS," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-32, June.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:3:d:10.1007_s10644-024-09702-0
    DOI: 10.1007/s10644-024-09702-0
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    More about this item

    Keywords

    GHG; Renewable energy RandD budgets per capita; Energy technologies RandD budgets per capita; BRICS; AMG;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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