ORIGINAL RESEARCH
Renewable Energy and Global Value Chains: Catalysts for Reducing Carbon Emissions in BRICS Countries
 
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1
Department of Economics and Law, Concord University College Fujian Normal University, Fuzhou, Fujian 350117, China
 
2
Department of Economics, National College of Business Administration and Economics, Lahore Sub Campus Multan, Pakistan
 
3
Department of Finance and Economics, College of Business, University of Jeddah, Jeddah, Saudi Arabia
 
 
Submission date: 2024-08-30
 
 
Final revision date: 2024-11-06
 
 
Acceptance date: 2024-11-20
 
 
Online publication date: 2025-01-24
 
 
Corresponding author
Hui Huang   

Department of Economics and Law, Concord University College Fujian Normal University, Fuzhou, Fujian 350117, China
 
 
 
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ABSTRACT
Clean energy consumption is essential for reducing environmental pollution and harmful emissions. Carbon dioxide is the most important air pollutant and a source of climate change worldwide, creating numerous issues for living organisms. The purpose of this study was to analyze the dynamic relationship between renewable energy consumption, global value chains, urbanization, and carbon emissions. This study utilized common correlated effects mean group and augmented mean group estimator econometric approaches to analyze panel data from 2000 to 2018 in BRICS countries. The findings revealed that renewable energy consumption and global value chains were negatively associated with carbon emissions in the BRICS economies, while urbanization was positively associated with CO2 emissions. These findings indicate that these variables play important roles in controlling air pollutants. It is concluded that high renewable energy consumption and participation in GVCs improve environmental quality by decreasing CO2 emissions. To capture the favorable impacts of variables along with economic activities, BRICS economies should increase renewable energy consumption by providing green finance. They should develop international collaborations to initiate green initiatives and adopt eco-friendly production practices to control environmental pollution.
eISSN:2083-5906
ISSN:1230-1485
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