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Evaluating the Role of Green Technology Diffusion on Environmental Quality: PMG-ARDL Evidence from BRICS Economies
Sidra Shaukat
Abstract:
The BRICS countries rank among the top emitters of CO2 and are important contributors to global economic growth. Achieving climate targets while preserving sustainable development requires speeding up the adoption of green technologies due to mounting environmental concerns. Thus, this article scrutinizes the empirical consequences of green technological diffusion on environmental quality in BRICS economies, by employing panel data for the period from 1990 to 2023. Pooled Mean Group ARDL (PMG-ARDL), a 2nd generation panel technique, is utilized to analyze the long plus short-term influence of selected factors of interest on environmental quality. The Granger causality test has been utilized to determine causation among the variables. Empirical evidence confirms that green technology diffusion reduces CO2 emissions significantly in the long run. Further, FDI and Energy prices also help to reduce CO2 emissions and improve environmental quality. Further, Fossil fuels, and industrialization have significantly and positively promoted CO2 emissions in these countries. A collaborative fund should be established by the government to promote research and development in green technologies, including energy-efficient manufacturing, carbon capture and storage (CCS), electric transportation, and renewable energy, according to the study.
Keywords:
Green Technology Diffusions, Green Growth, Second Generation Technique, PMG-ARDL, Granger Causality
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