Achieving Carbon Neutrality in the Brics Countries: the Roles of Innovation, Renewable Energy, Economic Growth and Carbon Taxes

Abstract

Abstract In order to reach the carbon neutrality (CAN) target, this current study examined the roles of research and development (R&D), patent (PAT), economic growth (ECG), renewable energy consumption (REC), renewable internal freshwater (RIF) and carbon taxes (CAT) in achieving CAN from BRICS perspective. We employed panel data of BRICS countries from 2000 to 2020 with second-generational econometric estimators (AMG and CCEMG). We discovered that R&D, RIF and CAT promote CAN by mitigating carbon emissions (CO2) and methane emissions (CH4). Our findings indicated REC contributes massively in achieving CAN. ECG was found to initially delays CAN objective. We detected Environmental Kuznets Curve (EKC) in BRICS. URB and IND also had controlling influence by prolonging CAN agenda. The authors found a feedback mechanism from ECG, REC, RIF, CAT to CO2, and from R&D, REC, RIF, CAT and URB to CH4 in BRICS, indicating that R&D, ECG, REC, RIF, and CAT granger cause to CAN and vice versa. Finally, based on the country-wise details analysis of the variables, China recorded the highest CO2, CH4, ECG and PAT, India had the highest R&D, Brazil the highest REC, and Russia the highest RIF and CAT.