Analyzing the impact of export diversification and technological innovation on renewable energy consumption: Evidences from BRICS nations. (November 2021) - Sharma, Rajesh
Abstract: Due to the rapid industrial growth in the BRICS nations, export earnings and energy demand witnessed an upturn in the preceding years. Therefore, by considering export diversification, extensive export margin, and intensive export margin as the determinants of renewable energy, the present study intended to explore whether total, horizontal, and vertical growth in exports stimulated the demand for renewable energy in the BRICS nations for the period of 1990–2018. In doing so, technological innovation, income inequality, and capital formation are carried as controlled variables. The elasticity coefficients revealed that export diversification, traditional exports, technological innovation, and capitalization contributed to escalating the usage of cleaner energy solutions, whereas the exports of new products and income inequality had a negative impact on the demand for renewable energy. The computed results signify the need for advanced and renewable energy-based production processes and just distribution of income in the society so that at industrial and household levels, cleaner, energy-efficient, and environment-friendly procedures can be followed. For securing the constructive contribution of various stakeholders, the study proposed a multipronged policy framework, which may help to culminate a synergy between economic and environmental channels. Graphical abstract: Notes: Inc. sig., Inc. insig., and Dec. sig. show significant increase, insignificant increase, and significant decrease in renewable energy consumption, respectively. Image 1 Highlights: Export product diversification increases renewable energy consumption. Intensive export margin intensifies the demand for cleaner energy solutions. Extensive export margin leads to a decrease in cleaner energy usage. Technological innovation stimulates the usage of cleaner energy solutions.