The Impact of the Renewable Energy Transition on Economic Growth in BRICS Nations

Nyiko Worship Hlongwane () and Hlalefang Khobai
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Nyiko Worship Hlongwane: Faculty of Commerce and Administration, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa
Hlalefang Khobai: Faculty of Commerce and Administration, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa

Energies, 2025, vol. 18, issue 16, 1-28

Abstract: The BRICS countries have been increasingly prioritizing electricity transition as a crucial step towards achieving sustainable growth, energy security, and mitigating climate change. As major emerging economies, the BRICS nations will play a significant role in the global energy landscape since their transition to renewable energy sources holds a significant implication for global energy markets and environmental sustainability. This study investigates the impact of the renewable energy transition on economic growth in BRICS nations from 1990 to 2023, employing a panel NARDL, DOLS, and FMOLS models. This study investigates the relationship between disaggregated renewable energy sources and economic growth. The findings show that renewable energy’s impact on economic growth varies across countries and depends on the type of renewable energy source. Specifically, hydropower, and wind power are found to have significant positive impacts on economic growth in some BRICS countries, while other renewables and trade openness have insignificant impacts. To foster economic growth and the expansion of renewable energy, it is essential for policymakers to focus on investments in hydropower and wind energy. Furthermore, they should encourage trade liberalization, as well as nuclear power development, and enhance regional collaboration. This study offers significant contributions to the current body of literature on the renewable energy–economic growth nexus, supplying crucial insights for both policymakers and researchers.

Keywords: renewable energy transition; disaggregated renewable energy; economic growth; BRICS; SDGs 7, 8, and 13 (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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