The impact of green finance, eco-innovation, renewable energy and carbon taxes on CO₂ emissions in BRICS countries: Evidence from CS ARDL estimation

Abstract

A sharp increase in economic and human development has multiplied the carbon intensity due to which there is a significant need of effective strategies in order to curb carbon emissions. Thus, the present study aims to examine the effective of green finance, eco-innovation, renewable energy output (REO), renewable energy consumption (REC), and carbon taxes on carbon dioxide (CO₂) emissions in BRICS countries in the time of 2001–2020. Cross-sectional autoregressive distributed lag (CS ARDL) is used to test the connection among the variables. Empirical estimations of CS-ARDL approach validates the effectiveness of green finance, eco-innovation, REO, REC, carbon taxes, and industrialization as the relationship of these factors with carbon emissions is negative in nature in BRICS economies. Based on the evidences, the study recommends the formulation of environmentally friendly practices and advancement in green finances to mitigate carbon emissions.

Keywords

Green finance / Eco-innovation / Renewable energy output / Carbon taxes / Environmental degradation / CO₂ emissions

CRediT authorship contribution statement

Muhammad Sadiq: Writing – original draft, Writing – review & editing. Ka Yin Chau: Methodology. Nguyen Tran Thai Ha: Conceptualization. Thi Thu Hien Phan: Supervision. Thanh Quang Ngo: Writing – review & editing, Software, Data curation. Pham Quang Huy: Visualization.

The conceptualization and design of the study were collective efforts of all authors. Preparation of the materials, collection of data, and analysis were all carried out.

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Acknowledgement

Thanh Quang Ngo: This research is partly funded by the University of Economics Ho Chi Minh City, Vietnam.

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