Unveiling the dynamics: how foreign aid shapes renewable energy, technology, globalization, and sustainable environments in BRICS nations

Abstract

AbstractAlthough the existing literature on environmental sustainability (ES) emphasizes its importance, yet few empirical studies look at the major contributing variables to ES. Therefore, we examine how the use of renewable energy, globalization, and technological innovation (TI) contribute to ES, with the moderating influence of foreign aid, spanning the period from 1996 to 2019 in BRICS economies. For data analysis, we apply the ARDL methodology, revealing an adverse and substantial link among globalization, TI, and the consumption of renewable energy with ES. Additionally, we discover that foreign aid has a beneficial moderating effect on the association between ES, globalization, and TI. On the other hand, it is found that foreign aid has an adverse moderating impact on the link between renewable energy sources and ES. This research also yields crucial practical implications, offering in-depth insights for the design of more effective policies to foster economic growth.