The effect of renewable energy development, market regulation, and environmental innovation on CO2 emissions in BRICS countries

The relationship between energy, environment, and economic growth has been received a lot of attention recently among scientific studies, but environmental sustainability remains a global issue. Renewable energy development, green technological innovations, and regulatory policy mechanisms can all help to reduce greenhouse gas emissions and support environmental sustainability. The purpose of this study was to look at the influence of renewable energy development, market regulation, and environment-related innovation on CO2 emissions in the BRICS countries from 1990 to 2020. For empirical analysis, it uses second-generation panel unit root test and updated linear and nonlinear cointegration techniques. To this end, this study employs symmetric and asymmetric approach to linear and nonlinear relationship among study variables. The findings indicate that there is long-run symmetric and asymmetric relationship between renewable energy development, market regulation, environment-related innovation, and CO2 emissions. The market regulation plays significant mediating role in relation between renewable energy development, environment-related innovation, and CO2 emissions. Our findings suggest that BRICS countries need to more focus on the environment-related innovation and renewable energy development. They should design market-based environmental regulation policies, emphasize on environmental taxes, expand renewable energy development, and environment-related innovations. Such strategies are key to limiting CO2 emissions and gain environmental sustainable.