Technology Innovation, Economic Growth and Carbon Emissions in the Context of Carbon Neutrality: Evidence from BRICS

Abstract

This study selects the panel data of five BRICS nations (Brazil, Russia, India, China, South Africa) from 1990 to 2019 to empirically explore the impact of technological innovation and economic growth on carbon emissions under the context of carbon neutrality. Granger causality test results signify that there exists a one-way causality from technology patent to carbon emission and from economic growth to carbon emission. We also constructed an improved Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. The regression results manifest that technology patents contribute to the realization of carbon emission reduction and carbon neutralization, while the economic growth of emerging economies represented by BRICS countries significantly improves carbon emissions, but every single BRICS country shows differentiated carbon emissions conditions with their economic development stages. The impact of the interaction term on carbon emissions for the five BRICS countries also presents country-specific heterogeneity. Moreover, the Environmental Kuznets Curve (EKC) test results show that only Russia and South Africa have an inverted U-shaped curve relationship between economic growth and carbon emissions, whereas Brazil, India and China have a U-shaped curve relationship. There exists no EKC relationship when considering BRICS nations as a whole. Further robustness tests also verify that the conclusions obtained in this paper are consistent and stable. Finally, the paper puts forward relevant policy suggestions based on the research findings.