CO2 emissions in BRICS countries: what role can environmental regulation and financial development play?

To ensure sustainability, it is necessary to achieve carbon emission mitigation goals without compromising economic growth. Assessing whether the BRICS countries, which are rapidly growing in terms of economy and carbon emissions, are moving toward achieving sustainable developing goals, through important policy measures and their implementation, is necessary. For this purpose, this study investigates the impact of environmental regulation and financial development on carbon emissions in BRICS countries from 1995 to 2016, employing the most recent data estimation technique common correlated effect means group (CCEMG). The empirical results reveal that financial development contributes to carbon emissions, whereas environmental regulations are also found to degrade the environment by stimulating carbon emissions. Important policy insights are suggested for policymakers to counter environmental challenges.