Document Type : ORIGINAL RESEARCH ARTICLE
Author
Department of Basic Sciences, College of Science and Theoretical Studies, Saudi Electronic University, Dammam, Saudi Arabia (32256)
Abstract
BACKGROUND AND OBJECTIVES: This study explored the complex relationships among economic growth, environmental policies, renewable energy adoption, and carbon emissions in various economic environments, specifically focusing on Brazil, Russia, India, China, and South Africa. These factors are investigated through the lens of the Environmental Kuznets Curve framework to discover if these emerging economies adhere to, vary from, or demonstrate distinctive variants. This study has established a framework for analyzing how development phases impact environmental degradation and evaluates the sustainability initiatives, particularly focusing on renewable energy adoption and policy change, to help lessen carbon emissions in different economic contexts.
METHODS: The study employed a range of statistical and econometric techniques to examine the relationship among economic growth, environmental policies, renewable energy adoption, and carbon emissions in Brazil, Russia, India, China, and South Africa from 1990 to 2022. This study used statistical analysis through descriptive statistics and correlation analysis. Furthermore, stationarity of the data is tested by using the Augmented Dickey-Fuller and Phillips-Perron tests. Moreover, the bounds testing is utilized to examine the cointegration among the estimated variables, whereas the Autoregressive Distributed Lag method is applied to investigate both short and long-run elasticities. By utilizing these methods collectively, a detailed investigation of whether panels of these economies align with, deviate from, or exhibit variations in the Environmental Kuznets Curve framework.
FINDINGS: The findings revealed that an inverted U-shaped trajectory between economic development and environmental pollution is evident in Russia, South Africa, Brazil, and China, suggesting that as economic development increases in these countries, environmental degradation worsens because of escalating carbon emissions. Four key points of particular interest from energy, environmental, and economic perspectives are: (1) realigning panel of these countries’ industrialization and economic development policies with environment management initiatives, acknowledging that (2) an all-size-fits-all renewable energy consumption policy may not be equally effective in abating carbon emissions across all economies, (3) the incomplete coverage of consumptions sources and a subset of industries limiting a higher carbon tax’s effective reduction in carbon emissions (4) financial regulations and incentives related to carbon taxes, green financing, or sustainable investments and emission reductions providing an impactful and novel avenue for enhancing financial development’s carbon emissions inhibiting role.
CONCLUSION: These findings may offer policy-makers or organizations key information for sustainable development policies, which help address the conflict between economic growth and environmental quality, and may be applicable in all selected countries as well as other developing countries.
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