The role of carbon taxation in promoting a green economy for sustainability: Optimizing natural resource efficiency

This study investigates the role of carbon taxation in enhancing natural resource efficiency and fostering a green economy within the BRICS countries, spanning the period from 1991 to 2022. Given the challenges these countries face, including infrastructural and technological limitations, funding difficulties for eco-friendly initiatives, and the pressures of economic growth, this research aims to explore sustainable development pathways. Employing econometric models such as, LM Bootstrap panel cointegration, and continuously updated fully modified (CUP-FM) and bias-corrected (CUP-BC) estimators, the analysis delves into the dynamics between research and development, globalization, renewable energy adoption, economic advancement, and natural resource efficiency. Findings indicate that sustainable modifications in production and consumption patterns can significantly contribute to the green economy, highlighting the distinct potential for green sector investments compared to traditional industries. The study underscores the importance of policy measures by BRICS countries to promote resource efficiency, renewable energy, eco-friendly land use, green urbanization, and technological innovation for sustainable growth.