Do environmental stringent policies enhance the impact of renewable energy on CO2 reduction? Evidence from BRICS-T economies.

The pressing challenge of climate change necessitates a deeper understanding of how policy frameworks enhance the impact of renewable energy in reducing carbon emissions, particularly in rapidly developing economies. This study fills a crucial void by investigating the moderating role of stringent environmental policies on the nexus between renewable energy consumption and carbon dioxide emissions. The analysis covers data from the BRICS-T nations over the period 1990-2020. To assess the hypothesized relationships among the variables, we employed the Fully Modified Ordinary Least Squares (FMOLS) approach. The Dynamic Ordinary Least Squares (DOLS) method was used to validate the robustness of our estimates. The study outcomes indicate that renewable energy significantly reduces carbon emissions, and this effect is further reinforced when combined with stringent environmental policies. Stringent environmental policies also notably reduce carbon emissions across the sample economies. Our findings highlight the need for coordinated policy frameworks that concurrently support clean energy initiatives and enforce strict ecological standards. Such integrated strategies are vital for advancing sustainable development pathways and mitigating the risks of global climate disruption.