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

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

29 April 2024 | Azer Dilanchiev, Bobur Urinov, Sugra Humbatova, Gunay Panahova
This study investigates the relationship between climate change, the interconnected elements of BRICS countries, and investments in research and development (RandD) for renewable energy. Using the augmented mean group estimator and Dumitrescu–Hurlin non-causality test, the research examines the economies of BRICS countries from 1990 to 2021. The findings indicate that increasing investments in renewable energy RandD significantly reduces greenhouse gas (GHG) emissions in BRICS nations. Specifically, a 1% increase in per capita renewable energy RandD spending is associated with a 2.24% decrease in emissions, while a 1% rise in overall energy technology RandD budgets corresponds to a 3.15% emissions reduction. These results highlight the potential of innovation-focused policies to promote sustainability alongside economic growth. The study emphasizes the need for more research to develop effective policies that use RandD to reduce emissions without compromising larger development objectives. The BRICS countries, comprising Brazil, Russia, India, China, and South Africa, are significant contributors to global GHG emissions and face challenges in balancing energy security, economic progress, and environmental preservation. The findings provide critical insights into the efficacy of innovation systems alignment for accelerating clean energy transitions and inform policy efforts to drive sustainable transitions.This study investigates the relationship between climate change, the interconnected elements of BRICS countries, and investments in research and development (RandD) for renewable energy. Using the augmented mean group estimator and Dumitrescu–Hurlin non-causality test, the research examines the economies of BRICS countries from 1990 to 2021. The findings indicate that increasing investments in renewable energy RandD significantly reduces greenhouse gas (GHG) emissions in BRICS nations. Specifically, a 1% increase in per capita renewable energy RandD spending is associated with a 2.24% decrease in emissions, while a 1% rise in overall energy technology RandD budgets corresponds to a 3.15% emissions reduction. These results highlight the potential of innovation-focused policies to promote sustainability alongside economic growth. The study emphasizes the need for more research to develop effective policies that use RandD to reduce emissions without compromising larger development objectives. The BRICS countries, comprising Brazil, Russia, India, China, and South Africa, are significant contributors to global GHG emissions and face challenges in balancing energy security, economic progress, and environmental preservation. The findings provide critical insights into the efficacy of innovation systems alignment for accelerating clean energy transitions and inform policy efforts to drive sustainable transitions.
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[slides and audio] Catalyzing climate change mitigation%3A investigating the influence of renewable energy investments across BRICS