Advancing SDG 7 and SDG 13 in BRIC economies through renewable energy transitions and institutional quality while mitigating energy poverty

Moving to renewable energy does not necessarily trigger an environmental and social benefit at the same time, especially in emerging economies with institutional limitations and uncertainty in the global energy market. This study investigates if the institutional quality conditions the relationship between the two sustainable-development outcomes (electricity access as an inverse proxy for energy poverty; higher access indicates lower energy poverty and carbon intensity) and renewable energy consumption in the BRIC economies of Brazil, Russia, India and China during 2000–2024. For the study, second generation panel diagnostics, panel cointegration tests, Generalized Least Squares with a correlated error structure, and Panel-Corrected Standard Errors are used to assess the direct and indirect links between renewable energy, institutional quality and the two outcomes. The results show that there is a negative correlation between renewable energy and carbon intensity, reflecting its environmental contribution, but a non-linear correlation between renewable energy and electricity access. The interaction results also suggest that the carbon mitigating effect of RE intensifies with better institutional quality, specifically regulatory quality and rule of law. The effectiveness of the transition is also affected by global uncertainty proxied by economic policy uncertainty. Our results highlight the importance of the role of effective institutions and inclusive policies on energy access for the deployment of renewable energy. The study builds on the literature by conceptualizing institutional quality as a conditioning mechanism between renewable-energy transitions and environmental sustainability and energy-access outcomes in major emerging economies.