Towards unlocking the chain of sustainable development in the BRICS economies: Analysing the role of economic complexity and financial risk

Abstract

AbstractIn response to the mounting risks posed by climate change, innovation and mitigation of pollution have emerged as key drivers of sustainable growth and the environment. This research aims to explore the effect of economic complexity and financial risk on the load capacity factor. The research employed a series of second‐generation techniques such as a method of moment quantile regression and Dumitrescu Hurlin panel causality covering the period between 1990 and 2018. The findings provided convincing evidence of cointegration. The long‐run analysis showed that renewable energy use, economic complexity and financial risk contribute to ecological quality. However, non‐renewable energy and economic progress threaten ecological quality by lessening the load capacity factor. The research revealed causality from financial risk, economic growth, disintegrated energy and economic complexity to load capacity factor. Lastly, a policy framework is proposed based on the study findings to accomplish the sustainable development goals (SDGs) 7, 13 and 17.