Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries
Natural resources are a strong factor in economic advancement. However, the excessive mining and consumption of natural resources lead to various environmental issues in both emerging and developed economies. Carbon emission due to the exploitation of natural resources is inevitable. Institutional q...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-05-01
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| Series: | Energy Strategy Reviews |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2211467X25001051 |
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| author | Muhammad Sadiq FengSheng Chien Bushra Tufail Jing Zhang |
| author_facet | Muhammad Sadiq FengSheng Chien Bushra Tufail Jing Zhang |
| author_sort | Muhammad Sadiq |
| collection | DOAJ |
| description | Natural resources are a strong factor in economic advancement. However, the excessive mining and consumption of natural resources lead to various environmental issues in both emerging and developed economies. Carbon emission due to the exploitation of natural resources is inevitable. Institutional quality and decentralized fiscal policy can lessen the harmful influence of the volatility of natural resources on climate quality. Hence, it is beneficial to examine the role of various factors in the connectedness of volatility of natural resources and CO2 emissions. This research examines the role of the volatility of natural resources, R&D in clean energy, decentralized fiscal policy, and institutional quality in mitigating or enhancing environmental quality. The study extends the space for further research by including comprehensive factors that affect the environment. The study employs the CS-ARDL econometric model and observes that R&D in clean energy, institutional quality, and decentralized fiscal policy have negative connectedness with CO2 emissions, while GDP and natural resource volatility have positive connectedness with carbon emissions. The study implies that institutional quality and decentralized fiscal policy influence climate quality, which is complementary to natural resource volatility. The study recommends that governments of BRICS countries establish an effective adoption of long-term strategies to improve climate quality through the empowerment of lower-level government and good governance. |
| format | Article |
| id | doaj-art-3a09b285b4fe4564b978c1ca2c5ec6c0 |
| institution | Kabale University |
| issn | 2211-467X |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Strategy Reviews |
| spelling | doaj-art-3a09b285b4fe4564b978c1ca2c5ec6c02025-08-20T03:25:04ZengElsevierEnergy Strategy Reviews2211-467X2025-05-015910174210.1016/j.esr.2025.101742Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countriesMuhammad Sadiq0FengSheng Chien1Bushra Tufail2Jing Zhang3Carbon Economy Research Institute, Fuzhou University of International Studies and Trade, Fuzhou, China; School of Accounting and Finance, Faculty of Business and Law, Taylor's University, Subang Jaya, Malaysia; University of Economics and Human Sciences, Warsaw, PolandCarbon Economy Research Institute, Fuzhou University of International Studies and Trade, Fuzhou, China; Faculty of Business, City University of Macau, Macau, ChinaInstitute of Business Management (IOBM) Karachi, PakistanDepartment of Accountancy and Finance, University of Otago, Dunedin, New Zealand; Corresponding author.Natural resources are a strong factor in economic advancement. However, the excessive mining and consumption of natural resources lead to various environmental issues in both emerging and developed economies. Carbon emission due to the exploitation of natural resources is inevitable. Institutional quality and decentralized fiscal policy can lessen the harmful influence of the volatility of natural resources on climate quality. Hence, it is beneficial to examine the role of various factors in the connectedness of volatility of natural resources and CO2 emissions. This research examines the role of the volatility of natural resources, R&D in clean energy, decentralized fiscal policy, and institutional quality in mitigating or enhancing environmental quality. The study extends the space for further research by including comprehensive factors that affect the environment. The study employs the CS-ARDL econometric model and observes that R&D in clean energy, institutional quality, and decentralized fiscal policy have negative connectedness with CO2 emissions, while GDP and natural resource volatility have positive connectedness with carbon emissions. The study implies that institutional quality and decentralized fiscal policy influence climate quality, which is complementary to natural resource volatility. The study recommends that governments of BRICS countries establish an effective adoption of long-term strategies to improve climate quality through the empowerment of lower-level government and good governance.http://www.sciencedirect.com/science/article/pii/S2211467X25001051Clean energy expenditureR&DClimate qualityVolatility of natural resources: decentralized fiscal policy |
| spellingShingle | Muhammad Sadiq FengSheng Chien Bushra Tufail Jing Zhang Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries Energy Strategy Reviews Clean energy expenditure R&D Climate quality Volatility of natural resources: decentralized fiscal policy |
| title | Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries |
| title_full | Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries |
| title_fullStr | Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries |
| title_full_unstemmed | Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries |
| title_short | Steps towards climate sustainability: The role of natural resource volatility, fiscal governance, institutional quality, and clean energy R&D in BRICS countries |
| title_sort | steps towards climate sustainability the role of natural resource volatility fiscal governance institutional quality and clean energy r d in brics countries |
| topic | Clean energy expenditure R&D Climate quality Volatility of natural resources: decentralized fiscal policy |
| url | http://www.sciencedirect.com/science/article/pii/S2211467X25001051 |
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