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This analysis explores the effects of clean energy and innovation on environmental degradation in BRICS, suggesting critical policy recommendations.
In recent decades, rapid economic development, population growth, urbanization and rising demand for energy in emerging economies-particularly BRICS nations have led to threat for environmental sustainability. In this context, technical innovation and clean use may have significant impact on environmental degradation. Therefore, the present study aims to explore the impact of technical innovation and clean energy consumption on environmental degradation (CO2E) in BRICS countries, spanning the period 1992Q4-2018Q4. The Johansen-Fisher panel cointegration test results show that clean energy use, CO2E, innovation, and economic growth exhibit long-run equilibrium association. Subsequently, panel Fully Modified Ordinary Least Squares (FMOLS) results reveal that innovation and clean energy use increase environmental degradation and find the existence of “the EKC hypothesis” in the set of these emerging economies. Further, Dumitrescu and Hurlin (Econ Model 29(4):1450–60, 2012)’s heterogenous panel non-causality test indicates two-way causality between clean energy use, CO2E, and innovation and one-way causality moving from economic growth to CO2E. Finally, this study offers valuable suggestions for policymakers to promote environmentally friendly technical innovation and clean energy consumption to reduce environmental degradation.
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Samal et al. (2026) studied this question.
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