Regional energy governance, environmental quality, and financial development: a longitudinal study of the BRICS economies

This study examines the relationships between energy alternatives, environmental quality, financial development, and good governance in the BRICS (Brazil, Russia, India, China, and South Africa) over the period 1997–2020. This study assesses how energy structure, environmental conditions, and financial sector development individually and jointly influence governance performance in emerging economies. The study adopts a mixed-method empirical framework that integrates panel econometric techniques FMOLS and DOLS with DQCA, allowing for the examination of both net effects and configurational causal patterns. The results reveal that renewable energy consumption and environmental quality are positively associated with good governance, indicating that cleaner energy systems and improved environmental conditions enhance institutional performance and governance effectiveness. In contrast, financial development shows a negative relationship with governance, suggesting that rapid financial expansion may generate regulatory complexity, institutional inefficiencies, and governance challenges in emerging economies. Fossil fuel energy consumption exhibits mixed and context-dependent effects across model specifications. The DQCA results that governance outcomes are driven by multiple causal configurations rather than a single linear pathway. In some cases, high financial development offsets low renewable energy use, while other combinations involving fossil fuel dependence, moderate renewable energy use, and weaker environmental quality are also linked with stronger governance.