Renewable energy, fiscal policy and load capacity factor in BRICS countries: novel findings from panel nonlinear ARDL model

Tomiwa Sunday Adebayo () and Ahmed Samour ()
Additional contact information
Tomiwa Sunday Adebayo: Cyprus International University
Ahmed Samour: Dhofar University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 2, No 62, 4365-4389

Abstract: Abstract In this paper, we assess the effects of fiscal policy on load capacity factor using data spanning from 1990 to 2018 in BRICS nations (Brazil, Russia, China, India, and South Africa). Unlike both CO2 emissions and ecological footprint, the load capacity factor captures both the demand and supply sides of the environment. This research leverages on co-integration test, second-generation unit root tests, and the novel panel nonlinear autoregressive distributed lag (PNARDL). The results revealed that the major contributors to environmental deterioration are economic expansion and nonrenewable energy, while environmental sustainability is attributed to increased renewable energy. Furthermore, a positive shock in taxation revenue increases the quality of the environment while positive (negative) shocks in government expenditure decrease environmental quality. In affirming the PNARDL testing approach findings, the current study employed the pool mean group (PMG) and mean group (MG) estimators to assess the linkage between the independent and dependent variables. The results of the MG and PMG estimators align with the panel nonlinear ARDL results. Besides, the panel causality test also revealed unidirectional causality from renewable energy, nonrenewable energy, economic growth, government expenditure, and taxation revenues to load capacity factor. These findings affirm the findings of the PNARDL testing approach. The study suggests that the BRICS nations’ governments should use the fiscal policy to enhance ecological sustainability by promoting investment and projects in renewable sources.

Keywords: Load capacity factor; Economic growth; Taxation revenue; Government expenditure; BRICS nations (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-022-02888-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:26:y:2024:i:2:d:10.1007_s10668-022-02888-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-022-02888-1

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().