What role do emission trading schemes, energy innovation, and technology transfer play in sustainable recovery? A perspective from BRICS economies

Abstract

To ensure long-run sustainability, it is imperative to achieve the goal of zero-carbon emissions without compromising economic growth. Identifying whether BRICS economies, which are an attractive set of countries due to their rapid economic growth and high emissions, can shift towards sustainability with the support of policy measures, is a question which needs to be addressed. This article investigates the impact of emission trading schemes, energy innovation, technology transfer, population growth, and inflation on the economic performance of BRICS economies (2001–2020). The outcomes of the CS-ARDL and PMG estimators reveal that carbon taxes, carbon finance, energy innovation, technology transfer, population growth, and inflation have positive effects on economic performance. In light of the evidence, policy insights are recommended to achieve a win–win situation for economic and environmental performance.

Keywords

Emission trading schemes / Carbon taxes / Carbon finance / Energy innovation / Technology transfer / Economic performance

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