Is Sustainable Finance And Green Technology Paring Down Environmental Pollution? An Empirical Study Of Brics Economies

Abstract

The purpose of the study was to examine the effects of sustainable finance, green technology, economic growth, urbanization, and natural resource rent on CO2 emission, a proxy for environmental pollution, in BRICS (Brazil, Russia, India, China, and South Africa) nations. The analysis was conducted using World Development Indicators and OECD, 2022, annual data from 2005 to 2019, and a “Fixed Effect Model with least square dummy variable approach” (LSDV). According to the study's findings, Sustainable finance and green technology have a significant negative impact on environmental pollution, whereas energy development and urbanization have positive effects on environmental pollution. The natural resource rent in BRICS nations has no significant effect on environmental pollution. The study suggests that policymakers in BRICS nations should develop a strong research and development base in order to launch an increasing number of green technologies that can be used in the production process and reduce the emission rate of harmful gases and pollutants.