Association between the stock market and green economic growth: green recovery from BRICS economics

Yingjie Hu (), Yunhong Hao () and Ali Raza ()
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Yingjie Hu: Zhejiang Gongshang University
Yunhong Hao: Zhejiang Gongshang University
Ali Raza: University of Management & Technology

Economic Change and Restructuring, 2023, vol. 56, issue 6, No 6, 3884 pages

Abstract: Abstract This paper's main objective is to investigate the effect of stock market growth and green energy on GHG emissions. Further, this research empirically analyzes the effects of renewable energy consumption on CO2 emissions in the EKC hypothesis using data from BRICS countries (China, India, Russia, Brazil, and South Africa) from 1990 to 2019. The empirical analysis was carried out on the second-generation unit root test. The bootstrap panel integration method is used to verify long-term equilibrium connections between elements of all four models. The empirical results confirm a significant long-run flexibility study's findings that green energy improves environmental circumstances by lowering carbon pollution levels across the panel regions. Additionally, renewable energy consumption significantly decreases carbon dioxide emissions and increases financial output through the panels. Instead, the stock market expansion index fell carbon pollution in BRICS countries while increasing carbon pollution in India member country. In general, fixed capital formation and economic expansion degrade environmental quality by rising carbon pollution concentrations. This paper's results have significant and effective policy implications for promoting renewable energy consumption sources to help reduce CO2 emissions and ensure sustainable economic growth in the BRICS nations.

Keywords: Renewable energy consumption; Stock market; Sustainable economic growth; Green energy; CO2 emissions; BRICS countries; Gross fixed capital formation (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10644-022-09423-2

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