Analyzing the impact of export diversification and technological innovation on renewable energy consumption: Evidences from BRICS nations

Due to the rapid industrial growth in the BRICS nations, export earnings and energy demand witnessed an upturn in the preceding years. Therefore, by considering export diversification, extensive export margin, and intensive export margin as the determinants of renewable energy, the present study intended to explore whether total, horizontal, and vertical growth in exports stimulated the demand for renewable energy in the BRICS nations for the period of 1990-2018. In doing so, technological innovation, income inequality, and capital formation are carried as controlled variables. The elasticity coefficients revealed that export diversification, traditional exports, technological innovation, and capitalization contributed to escalating the usage of cleaner energy solutions, whereas the exports of new products and income inequality had a negative impact on the demand for renewable energy. The computed results signify the need for advanced and renewable energy-based production processes and just distribution of income in the society so that at industrial and household levels, cleaner, energy efficient, and environment-friendly procedures can be followed. For securing the constructive contribution of various stakeholders, the study proposed a multipronged policy framework, which may help to culminate a synergy between economic and environmental channels . (c) 2021 Elsevier Ltd. All rights reserved.