Impact of Renewable Energy on Economic Growth and CO2 Emissions—Evidence from BRICS Countries

The global focus on the use of renewable energy resources was mainly reignited by signing Kyoto Protocol Agreement in 1997. Since then, world has seen a great deal progress terms production and consumption energy. This turn is rapidly powering economic growth social development around globe. Contrary to popular belief, not limited developed countries only. developing are also endorsing as vital engine societal development. In this regard, even though their infancy BRICS, these taking concrete steps towards resources. results previous studies have indicated that with an increase GDP country its carbon footprint tends increase; Brazil, Russia, India, China, South Africa (BRICS) no exception regard. One main challenges research related measuring contribution singular model or techniques may be appropriate for generalization results. study intends overcome challenge application multiple econometric-based models which include “Cross Dependency” test, unit root “CIPS” (cross-sectional augmented IPS). Besides second generation, stochastic based upon econometrics, such DOLS test (dynamic ordinary least square) FMOLS (fully modified applied verification BRICS countries. novelty stems from fact seldom tandem especially indicate existence bi-directional relationship between GDP, thus lending support feedback hypothesis. Moreover, conservation hypothesis proven unidirectional causality CO2 emissions. Alongside these, included sensitivity analysis gauge impact emissions countries, regression performed create EKC curve used only but help highlighting using controlling reducing emissions, proving theory. Thus, it can deduced major concern led them Based findings present recommended policymakers should encourage offering incentives financial terms, interest-free low-interest loans, subsidies feed-in tariffs.