The impression of technological innovations and natural resources in energy-growth-environment nexus: A new look into BRICS economies

Anwar Khan; Faqir Muhammad; Yang Chenggang; Jamal Hussain; Sadia Bano; Muhammad Awais Khan

doi:10.1016/j.scitotenv.2020.138265

The impression of technological innovations and natural resources in energy-growth-environment nexus: A new look into BRICS economies

Sci Total Environ. 2020 Jul 20:727:138265. doi: 10.1016/j.scitotenv.2020.138265. Epub 2020 Apr 13.

Authors

Anwar Khan¹, Faqir Muhammad², Yang Chenggang³, Jamal Hussain³, Sadia Bano³, Muhammad Awais Khan³

Affiliations

¹ Southwestern University of Finance and Economics 55, Guanghuacun Street, Chengdu 611130, China. Electronic address: khan.anwar@smail.swufe.edu.cn.
² Karakurum International University, Gilgit, Pakistan. Electronic address: faqeer@kiu.edu.pk.
³ Southwestern University of Finance and Economics 55, Guanghuacun Street, Chengdu 611130, China.

PMID: 32315902
DOI: 10.1016/j.scitotenv.2020.138265

Abstract

We utilize extended STIRPAT "(stochastic impact of regression on population, affluence, and technology)" model to explore the impact of technological innovations and natural resources in energy-growth-environment nexus for a panel of BRICS "(i.e., Brazil, Russia, India, China, and South Africa)" economies over 1985-2014. Using Augmented Mean Group (AMG), and Fully Modified-Least Square (FM-LS) panel algorithms, the results indicate that technical innovations can reduce CO₂ emissions and help to improve economic growth in BRICS countries. Furthermore, our estimates support energy push emissions and validate the existence of the traditional "environmental Kuznets curve (EKC)" for BRICS and partially across the countries. Moreover, the empirical results indicate one-way causality from income to CO₂; a two-way causal relationship is operational between income and energy use and between energy use and CO₂ emissions in BRICS and individual countries. The results suggest that policymakers may consider the role of innovations as a clean source of technology to achieve energy security and a sustainable environment.

Keywords: Augmented mean group; BRICS; Energy-growth-environment nexus; Natural resources; Technological innovations.