Innovate, conserve, grow: A comprehensive analysis of technological innovation, energy utilization, and carbon emission in BRICS

Abstract

The aim of this study was to embark on a transformative exploration of the interplay between technological innovation, renewable energy, economic development, and carbon emissions in BRICS nations, unveiling novel insights that redefine sustainability paradigms and contribute to global environmental policymaking. This comprehensive study spans the years 1990–2022, meticulously examining the dynamics of economic indicators, energy consumption, renewable energy generation, and technological progress. The dataset's non‐normal distribution prompts the use of moment quantile regression, providing nuanced insights with consideration for diverse slopes and cross‐sectional dependencies. Validation through the “Dumitrescu‐Hurlin panel Causality Test” refines the findings, revealing the diminishing impact of technological innovation across quantiles. The study illuminates a compelling connection: heightened technological innovation correlates strongly with reduced carbon emissions, particularly evident at lower quantiles. This aligns seamlessly with existing research, emphasizing technology's transformative potential for sustainability. Conversely, a concerning positive association emerges between energy utilization and carbon emissions, highlighting the persistent environmental challenge posed by escalating energy use. Urgent strategic interventions are underscored to address the ecological consequences associated with rising energy consumption. The intricate relationship between renewable electricity production and carbon emissions unfolds, emphasizing renewables' pivotal role in mitigating environmental impact. This aligns with ongoing discussions regarding their indispensable contribution to sustainable development. The study underscores the strategic importance of prioritizing renewable power production in environmental sustainability initiatives. However, a disconcerting positive association surfaces between economic development and carbon emissions across all quantiles, revealing the environmental costs accompanying economic growth in BRICS nations. As economic development advances, carbon emissions escalate, presenting substantial sustainability challenges and emphasizing the imperative to balance progress with environmental conservation efforts. This contribution enriches the ongoing discourse on fostering sustainability within the BRICS nations and beyond, marking a significant stride toward a more environmentally conscious future.