Exploring the impact of financial globalization, good governance and renewable energy consumption on environmental pollution: Evidence from BRICS-T countries

Abstract

The nations of Brazil, Russia, India, China, South Africa, and Turkey (BRICS-T) have yet to find a satisfactory answer to the problem of how to reduce environmental pollution in their environments significantly. Using panel data from 1990 to 2022, this study analyzes the dynamic relationship between energy financial globalization (FG), good governance (GG), renewable energy consumption (REC), urbanization (URB), economic growth (GDP), and environmental pollution. To estimate the long-run and short-run interaction among the variables, this research included the Cross-sectional- ARDL. This research shows that economic growth, energy use, urbanization, and environmental degradation correlate positively and significantly. In contrast, the BRICS-T economies have significantly reduced environmental pollution due to FG, GG and REC. These results also lend credence to the Environmental Kuznets Curve (EKC) concept for developing nations, which has been the focus of recent attention. Additionally, the results from fixed effects-difference in differences (FE-DK) and AMG robustness tests also validate the results from the CS-ARDL estimator. Finally, the findings found that the BRICS-T countries may benefit from this study.

Keywords

• Carbon neutrality
• BRICS-T countries
• Financial globalization
• Good governance
• Urbanization
• Renewable energy consumption