Decoding BRICS Green Growth in the 2010s: An Empirical Analysis of Policy, Technology, and Investment

Abstract

Green Growth is now a highly significant goal for developing countries as climate challenges are worsening. This study examines the temporal evolution of the relationship among the environmental policy stringency index, renewable energy investment, and imports of eco-friendly technologies. The analysis is based on panel data consisting of BRICS countries from 2011 to 2020. Different analysis modules: Ordinary Least Squares (OLS) regression, correlation matrices, and Principal Component Analysis (PCA) highlight all the factors that affect sustainability transitions. The analysis highlights that consistently and significantly putting money into renewable energy leads to three benefits: less carbon emissions, a higher GDP, and increased electricity generation from renewable sources. The environmental policy stringency index demonstrates that stronger laws might assist in lowering emissions and boosting the economy, but it also shows that these policies could have unintended impacts on the usage of renewable energy, especially if infrastructure and institutions aren't ready. Imports of Eco-friendly technologies help the economy move forward; however, technologies do not truly help the environment. This technical solution alone is not adequate; the need for better domestic capabilities and governance frameworks is required. These results suggest that it is very vital to have a policy that is both robust and current, as well as direct, long-term investment in clean energy infrastructure. BRICS countries can work together, and they need to establish a balance between economic expansion and taking care of the environment. It also supplies vital knowledge to other developing economies that want to grow in a way that doesn't hurt the environment.  

Keywords Green Growth, Renewable Energy Investment, Environmental Policy Stringency,  Carbon Emissions Reduction, Sustainable Development