INSTITUTIONAL QUALITY, ECONOMIC GROWTH AND THE INTERACTIVE ROLE OF ENERGY INTENSITY ON CO₂ EMISSIONS IN BRICS ECONOMY

Abstract

Rising carbon emissions in BRICS economies have intensified concerns about whether institutional quality and economic expansion can coexist with environmental sustainability. This paper examines institutional quality, economic growth and the interactive role of energy intensity on co₂ emissions in BRICS economy. The period for study spanned between 1990-2024. The study made use of ex-post facto research design. Data set for the study was sourced from WDI. The study made use of PARDL as the main estimation technique. The study found that government effectiveness has positive (5.04) and statistically insignificant (0.08) effect on CO2 emissions in BRICS economies, gross domestic product has positive (0.19) and statistically significant (0.00) effect on CO2 emissions in BRICS economies while energy intensity and governance effectiveness has negative (-0.10) and statistically insignificant (0.71) effect on CO2 emissions in BRICS economies. The paper concluded that governance effectiveness and economic growth contribute to rising CO₂ emissions in BRICS economies, while the interaction between energy intensity and governance effectiveness exerts a weak mitigating effect. The policy recommendation for the study is that governments in BRICS economies must enhance environmental governance through better regulation enforcement, better coordination of policies and accountability in environmental management. Environmental sustainability aims must be harmonized with economic growth strategies, through promoting green industrialization, adoption of renewable energy sources and investment in energy efficient technologies. Policymakers also need to step up efforts to enhance efficiency in energy consumption in the various sectors through modernization of industrial processes of production, promotion of cleaner technologies and adoption of energy saving policies.