The pursuit of net-zero carbon in G7 and BRICS: The impact of good governance system

Abstract

Good governance system is perceived as one of the important mechanisms to achieve net-zero carbon emissions. However, a comparative study is needed to make collective decisions to ensure a successful transition. Therefore, this study considers six proxies to represent good governance system to assess its impact on net-zero emissions in G7 and BRICS countries. The Generalized Moment of Methods is employed for the analysis and the data is from 1996 to 2022. The results of the study revealed that good governance system causes carbon emissions and reduces renewable energy use in G7 while it is insignificant to affect carbon emissions but reduces renewable energy in BRICS. Based on the findings, effective institutional reform is recommended to ensure net-zero emissions.