Energy Transition, De-Carbonization, and Capital Markets Nexus: Insights from BRICS Economies

Mohammad Shakib (), Mirzat Ullah (), Farrukh Nawaz (), Umar Kayani (), Kazi Sohag () and Oleg Mariev ()
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Mohammad Shakib: Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia
Mirzat Ullah: Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia; & School of Management Sciences, Ghulam Ishaq Khan (GIK) Institute of Engineering Sciences and Technology, Topi, Swabi 23640, Pakistan
Farrukh Nawaz: Faculty of Business Studies, Arab Open University (AOU), Riyadh, Saudi Arabia
Umar Kayani: College of Business, Al Ain University, Abu Dhabi, United Arab Emirates
Kazi Sohag: Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia
Oleg Mariev: Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 2, 495-509

Abstract: This study investigates whether the capital markets of BRICS economies promote or hinder energy transition and de-carbonization within these regions. Using Driscoll-Kraay standard errors, we analyze the annual data from 2000 to 2021. We use Fixed Effects and Random Effects Generalized Least Squares (GLS) methods to validate our empirical results. The findings indicate that private sector credit deepening and stock market development exacerbate carbon dioxide emissions, undermining the potential for decarbonization in BRICS economies. Additionally, non-renewable energy intensity and GDP growth are found to contribute significantly to pollution emissions, further impeding decarbonization efforts within this economic bloc. The results reveal that FDI and energy transition play a crucial role in advancing de-carbonization in BRICS countries. This study proposes practical policy implications to mitigate emissions and support sustainable economic growth in the BRICS economies.

Keywords: Energy Transition; Carbon Emission; Capital Markets; BRICS (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.18276

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