The Nexus Of Technological Innovation And Carbon Dioxide Emissions:Empirical Evidence From BRICS Economies

The BRICS,with their population accounting for approximately 42%of the world’s total,abundant exploitable resources and energy,and gigantic development potential,can be regarded as the strongest emerging economies globally.While it plays an all-important role in global economic development and cooperation,it also emits large amounts of carbon dioxide（CO₂）,with the attendant following effects of climate disasters,causing environmental degradation that requires urgent attention from the authorities.With the further acceleration of the global digitization proceeding,innovative changes in production methods and the way the country’s economy and environmental governance policies are being propelled incessantly.At present,facing the new challenge brought by considering both the high growth target and the green sustainable development target,technology innovation has triggered and catalyzed the mainstream policy debate on this topic has been centered on economic growth and increased CO₂emissions through productivity.For an empirical estimation,this research study employs Stochastic Impacts by Regression on Population,Affluence,and Technology（STIRPAT）model.It expands it by including additional variables（such as CO₂emissions,renewable electricity output,economic growth,trade openness,and technological innovation）.The STIRPAT model is derived from the well-known IPAT model and offers a framework for experimentally estimating the consequences of human-caused environmental issues.In addition,the under-discussion section also discusses the renowned environmental Kuznets curve（EKC）hypothesis,which is among the major aims of this study.This research proposes and applies advanced panel estimating approaches provided in the framework of the paper to measure the influence of technological innovation（TI）on the level of CO₂emissions in the BRICS economies throughout the extended period of1990-2020.Prior to the long-run elasticities and after the descriptive statistics and normality estimates,this study employed panel diagnostic tests including the slope coefficient heterogeneity and panel cross-section dependence.Then,this study found that the slope coefficients are heterogenous and the cross-section dependence exists in the panel.Therefore,this study needs to utilize an appropriate unit root test to tackle the panel data issues.In response,a second-generation unit root test is employed,which asserts that all the variables are stationary at the first difference,except for the trade openness,which is stationary at the level.Afterward,this study analyzes the cointegration association between the variables,which is valid in the case of the BRICS economies.The existence of cointegration allows for estimating the long-run elasticities of the variables.Since the normality test reports the asymmetric distribution of the data,which is one of the major concerns of panel data.Therefore,this study uses novel techniques to account for the non-normality issue.This study uses the novel method of moment quantile regression,which provides efficient estimates at a specific location,scale,and quantile.After analyzing the specific influence of each explanatory variable on CO₂emissions,this study examines the causal nexus between the variables under consideration.The empirical results of the Granger panel causality test asserted that the feedback effect is present between the variables.Specifically,any policy level change in the regressors causes a change in the emissions level.Therefore,appropriate policy measures are required to reduce the environmental concerns of the BRICS economies.Since this study utilizes novel techniques to identify the variables’elasticities and real impact,the results and policies of this study could be generalized to other emerging economies to attain sustainable development in the near future.The study’s empirical findings asserted that economic growth and technological innovation are the significant factors of CO₂emission in the region.Since these economies are in the developmental stage,excessive use of traditional energy resources may helps in the economic growth,but also harm the environment via increased CO₂emissions.On the other hand,technological innovation and renewable electricity output are found to be adversely related to the CO₂emissions level.As a matter of fact,these economies are developing;still,technological advancement and renewables are favorable for their environmental sustainability.This study also examines whether the environmental Kuznets curve（EKC）exists in the BRICS economies.The empirical results suggest that the EKC paradox is valid in the BRICS economies,revealing that these economies could focus on economic growth while maintaining environmental sustainability.Besides,the energy efficiency and high-tech exports also exhibit a negative influence on the CO₂emissions of the under-discussion economies.High-tech exports and energy efficiency are significant tools to control CO₂emissions and promote environmental sustainability.Understanding whether and what effect technology innovation can have on CO₂emissions in the BRICS countries will help study the development and adoption of technological innovation policies for sustainable development in the BRICS countries in the context of the global warming disaster.Based on the empirical results,this study suggests that the BRICS economies should improve their national energy structures in response to their own conditions and environment,promote clean and renewable energy momentum,guarantee diversified and green energy development,protect and support energy efficiency projects,and introduce environmentally friendly technologies.Finally,the later stages of EKC development can also be considered when formulating policies.Designing technological innovations and adopting policies are necessary to use technology and green better the environment.