Green Technological Advances and Resource Rents as Levers for Carbon Reduction in BRICS: Implications for SDGs 7, 8, 9, 12, and 13

Abstract

In recent decades, rapid development in emerging economies has heightened climate challenges, threatening environmental sustainability and quality. In response, green energy, technological innovation, and carbon pricing strategies have emerged as key tools for environmental mitigation and promoting green economic growth. These strategies are integral to the goals of COP 27, the 2030 SDGs, and the pledge to reach carbon neutrality by 2060. However, the BRICS economic bloc faces significant obstacles in balancing socio‐economic growth with environmental sustainability. This study intentions to inspect the impact of natural resource rents, research and development (R&D) expenditures, green energy, green technological innovation, and economic growth on carbon emissions in BRICS economies from 1995 to 2021. Using a cross‐sectional ARDL model, the study explores relationships between these variables, employing advanced panel methods to account for CSD and heterogeneity. The empirical findings reveal that research and development expenditure, green energy, and green technological innovation contribute to CO2 emission reductions by 0.329%, 0.211%, and 0.148%, respectively. In contrast, a 1% increase in economic growth and natural resource rents corresponds to a substantial 0.499% and 0.840% upsurge in CO2 emissions. The Dumitrescu and Hurlin panel causality test also highlights reciprocal causal relationships among the variables. Based on these findings, the study recommends policy actions to achieve SDG targets: enforce stricter CO2 emissions regulations for SDG‐13, increase renewable energy investment for SDG‐07, support green innovation for SDG‐08, enhance R&D for SDG‐09, and promote circular economy practices for SDG‐12.