The mediating role of green energy and environmental policies in sustainable development for BRICS economies: A tripartite impact of entrepreneurial activities, urban development and economic growth on ecological footprint

Abstract

Recently, the globe has been facing several challenges, and environmental deterioration has become more prominent. Therefore, to deal with such environmental issues, the globe has tried to introduce several green initiatives via the Kyoto Protocol, the Paris Agreement, and the Sustainable Development Goals, but the problem remains intact. However, practitioners have no more choice but to exclude emerging economies from this race. For instance, to understand the response of emerging economies toward a sustainable environment, this study considers BRICS (Brazil, Russia, India, China and South Africa) economies. Similarly, the current empirical study utilizes innovative environmental determinants such as real income, urbanization, entrepreneurial activities, per capita renewable energy, financial innovation and environmental policy for selected regions from 2000 to 2021. However, the findings of the advanced estimators' series show the significant contribution of per capita green energy consumption, environmental policy and entrepreneurial activities toward environmental sustainability. In contrast, income, financial inclusion and urbanization contribute to environmental damage. Because of green energy supportive behavior, this study makes an additional step to investigate the mediating effect on financial inclusion, environmental policy and entrepreneurship. However, the mediating effect only supports environmental policy and entrepreneurship activities to reduce environmental pressure. From the policy perspective, the specified economies should allocate their financial resources to clean & green projects to attain the desired level of sustainability.