Exploring the impact of renewable energy, green taxes and trade openness on carbon neutrality: New insights from BRICS countries

The world faces two significant challenges: promoting sustainable economic growth and reaching carbon neutrality. In BRICS countries, these challenges are shaped by renewable energy, green taxes, and trade openness. These countries were selected for their strategic location and the abundance of relevant data collected over the period of 1990–2021, providing a distinctive window into the energy and economic dynamics of the area. The link between renewable energy consumption, green taxes, trade openness, and natural resources and their effects on carbon emissions in BRICS countries is examined in this study using the Fully Modified Ordinary Least Square Method (FMOLS) estimator and the Drisc Kraay estimator for the robustness test. The findings indicate that using renewable energy and green taxes primarily contribute to reducing emissions, particularly at higher emissions levels. The study reveals that various factors, namely financial globalization, trade openness, efficient resource management, and population growth, substantially impact carbon neutrality. Population growth positively impacts carbon neutrality, while using renewable energy sources mitigates it. Furthermore, the empirical findings show a statistically significant positive association between financial globalization, efficient resource management, and carbon neutrality in BRICS nations. Therefore, it is necessary to implement an integrated ecological governance strategy to control and direct financial resources towards sustainable development and green energy.