Adoption of renewable energy to phase down fossil fuel energy consumption and mitigate territorial emissions: evidence from BRICS group countries using panel FGLS and panel GEE models

Abstract

Abstract The recognition of climate change as real and unprecedented has been acknowledged by global communities. Furthermore, fossil fuel energy consumption and territorial emissions are identified as major drivers of climate change. Data collected from the World Bank for BRICS (Brazil, Russia, India, China, and South Africa) group of countries for the period from 1990 to 2018, and analyzed using Panel FGLS and Panel GEE models, revealed an inverted U-shaped relationship between GDP per capita and its square with fossil fuel energy consumption in BRICS countries. However, this relationship was not observed with territorial emissions. It is indicated that the BRICS group of countries is making efforts to reduce fossil fuel energy consumption, but investment in green technology is insufficient to reduce territorial emissions. Therefore, it is recommended that climate policies need to be more aggressively implemented to support investment in clean and green energy technology.

Keywords

• Fossil fuel
• Climate investment fund
• Renewable energy
• Panel data
• Climate change